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Use the information below for questions 21-22 Gramm Inc. is trying to estimate the first-year net operating cash flow (at year 1) for a proposed

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Use the information below for questions 21-22 Gramm Inc. is trying to estimate the first-year net operating cash flow (at year 1) for a proposed project. The financial staff has collected the following information on the project: Sales revenues Operating costs (excluding depreciation) Depreciation Interest expense $20 million 13 million 4 million 4 million The company has a 21% tax rate, and its WACC is 10%. 21. What is the project's operating cash flow for the first year (E=1)? 22. If this project would cannibalize other projects by S2 million of cash flow before taxes per year, explain how would this change your answer to question 21

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