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please solve and explain Colsen Communications is trying to estimate the first-year cash flow (at Year 1 ) for a proposed project. The assets required
please solve and explain
Colsen Communications is trying to estimate the first-year cash flow (at Year 1 ) for a proposed project. The assets required for the project were fully depieciated at the time of purchase. The financial statf has collected the following intarmation on the project: Sales revenues $15 milition Opersting costs 12 million Interest expense 3 miliion The company has n 25% tax rate, and its WACC is 14%. Write out your answers completely. For exomple, 13 million should be entered as 13,000,000. a. What is the project's operating cash flow for the first year (t=1) ? Mound your answer to the nearest dotar. 5 b. If this project would cannithalize other projects by $1.5 milion of cash fiow before taxes per year, how would this changen yout answit to part a) ltound your answer to the nearest obilar. The firm's 0Cl would now be 5 Step by Step Solution
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