Gramm Inc. 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 $20 million

Operating costs (excluding depreciation) 13 million

Depreciation 4 million

Interest expense 4 million

The company has a 21% tax rate, and its WACC is 10%.

21. What is the projects operating cash flow for the first year (t=1)?