Project Cash Flow The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of new proposed service: Projected sales Operating costs (not including depreciation) 24 million 13 million. Depreciation $ 6 million. Interest expense $ 3 million The company faces a 25% tax rate. What is the project's 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 it
new proposed service:
Projected sales
Ⓡ
Operating costs (not including depreciation)
24
million
13
million.
Depreciation
$6 million
Interest expense
$ 3 million.
The company faces a 25% tax rate. What is the project's 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 it new proposed service: Projected sales Ⓡ Operating costs (not including depreciation) 24 million 13 million. Depreciation $6 million Interest expense $ 3 million. The company faces a 25% tax rate. What is the project's 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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