Financial staff of cairn communications


"The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed services:

Project Sales $18 million
Operating Costs (not including deprecation) $ 9 million
Depreciation $ 4 million
Interest expense $ 3 million

The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t = 1)?"

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