PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues Operating costs (excluding depreciation) Depreciation Interest expense $15 million 10.5 million 3 million 3 million The company has a 40% tax rate, and its WACC is 11%. a. What is the projects cash flow for the first year (t 5 1)? b. If this project would cannibalize other projects by $1.5 million of cash flow before taxes per year, how would this change your answer to part a? c. Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a?