Project Cash Flow 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 $24 million Operating costs (not including depreciation) $8 milion Depreciation $4 million Interest expense $4 million The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Project Cash Flow
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
$24 million
Operating costs (not including depreciation)
$8 million
Depreciation
$4 million
Interest expense
$4 million
The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t= 1)? Enter your answer in dollars. For example,
an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
Transcribed Image Text:Project Cash Flow 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 $24 million Operating costs (not including depreciation) $8 million Depreciation $4 million Interest expense $4 million The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t= 1)? Enter your answer in dollars. For example, an answer of $1.2 million should be entered as $1,200,000. Round your answer to the nearest dollar.
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