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Eisenhower Communications is trying to estimate the first-year net operating cash flow (at Year 1) for a proposed project. The financial staff has collected the

Eisenhower Communications is trying to estimate the first-year net operating cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:........ Sales revenues -$5 million...... ......Operating costs (excluding depreciation) -3.5 million..... .......Depreciation -1 million..... ......Interest expense 1 million......The company has a 40% tax rate, and its WACC is 11%........ >>>>>>b.) If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year, how would this change your answer to part a? (Round your answer to the nearest cent.) The firm's OCF would now be _______

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