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) $11 million Depreciation $5 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.
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 |
$11 million |
| Depreciation | $5 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.
$
perating Cash Flow (OCF) is a financial metric that measures the amount of cash generated from a company's core business operations. It is a key indicator of a company's financial health and its ability to pay debts, fund capital expenditures, and pay dividends to its shareholders.
OCF is calculated as the difference between a company's cash inflows from operations and its cash outflows for operating expenses. It takes into account a company's revenue and the day-to-day costs of running the business, such as employee salaries, utilities, and supplies.
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