Operating Cash Flow
The financial staff of Carin 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 $ 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)?