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 | $18 million |
| Operating costs (not including |
$9 million |
| Depreciation | $4 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.
$
(7.75 is incorrect)
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Project
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 | $18 million |
| Operating costs (not including |
$9 million |
| Depreciation | $4 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.
$ 7,750,00 wrong answer and 7.75 is also wrong
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