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 $22 million Operating costs (not including depreciation) $12 million Depreciation $6 million Interest expense $3 million The company faces a 25% 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.
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 | $22 million |
| Operating costs (not including |
$12 million |
| Depreciation | $6 million |
| Interest expense | $3 million |
The company faces a 25% 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.
Depreciation refers to the method of allocating the cost of the assets over their useful life . It shows how much of the value of an asset has been used up.
Operating Cash Flows refer to the concept which is dictated as the cash generated by the operating activities of the business during a specific period of time . It includes non-operating expenses also.
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