Question
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 | $22 million |
Operating costs (not including depreciation) | $7 million |
Depreciation | $5 million |
Interest expense | $3 million |
The company faces a 25% tax rate. What is the project's operating cash flow for the first year (t = 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
$
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Get StartedRecommended Textbook for
Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
12th edition
1285850033, 978-1305480698, 1305480694, 978-0357688236, 978-1285850030
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