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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 $ 3 million

Interest expense $ 4 million

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