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The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service: Projected sales

The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:

Projected sales	$18 million
Operating costs (not including depreciation)	$ 9 million
Depreciation	$ 4 million
Interest expense	$ 3 million

The company faces a 40% tax rate. What is the projects operating cash flow for the first year (t=1)(t=1)?

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