Question 36 (6 points) Continued from the above question, the firm also wants to estimate the first year operating free cash flow (at t=1) for the project. The following information is collected: (Chapter 11) Projected sales $10 million Operating costs 7 million Capital cost allowance 2 million Interest expense in year one 1 million Additional capital expenditure in year one 1 million Additional material inventory cost in year one 0.5 million What is the project's free cash flow for the first year if the firm's tax rate is 28%? Additional material inventory cost in year one 0.5 million What is the project's free cash flow for the first year if the firm's tax rate is 28%? 3.25 million 2.75 million 4.5 million 1.22 million 0.56 million