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The firm is estimating the first year operating cash flow (at t=1) for a proposed project. What is the estimated operating cashflow for the first

The firm is estimating the first year operating cash flow (at t=1) for a proposed project. What is the estimated operating cashflow for the first year? The following information is available:

Tax rate

20%

Sales

$11 million

Operating costs excluding depreciation

$ 8 million

Depreciation

$ 1 million

Interest expense

$ 1.5 million

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