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Revenue estimates are based on the expectation of a higher price point resulting from a more robust product. Operating expenses include internal labor, maintenance,

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Revenue estimates are based on the expectation of a higher price point resulting from a more robust product. Operating expenses include internal labor, maintenance, overhead expense, and cost avoidance from being able to ramp down spending on existing platforms. The capitalized expenses include the costs of platform development, content creation, internal and external labor, computers, facility investment, and so on. These expenses are amortizable and depreciable over the first three of the six years of the project's expected life. They are recognized separately from the normal depreciation and amortization expenses. These capital expenses will be deducted from the project's annual cash flow from operations to derive at the project's total expected cash flows. Complete the following cash flow analysis based on the information provided. (Note: Express all values in millions of dollars and round all values to three decimal places. Use a minus (-) sign to indicate any negative amount.) Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Revenues 0 Less: Operating expenses Less: Depreciation & Amortization Operating Income Less: Tax Plus: Non-cash expenses Operating Cash Flow Less: Capitalized expenses 7.300 6.600 6.600 Total Cash Flow

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