Hoover Manufacturing is trying to estimate the first-year operating cash flow for a proposed project on which it has collected the following information:

Sales revenues	$12.4 million
Operating costs (excluding depreciation)	8.1 million
Depreciation	2.8 million
Interest expense	1.1 million

Hoovers financial staff has also determined that this project would cannibalize one of the firms other projects by $1.7 million of cash flow (before taxes) per year. Hoover has a 45 percent tax rate, and its WACC is 12 percent. Calculate the projects operating cash flow for Year 1.