The financial staff of Cairn Communications has identified the following information for the first year of the
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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$20 million
Operating costs (not including depreciation)$8 million
Depreciation $5 million
Interest expense $5 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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