operating cash flow
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Free InquiryThe 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
$25 million
Operating costs (not including depreciation)
$11 million
Depreciation
$5 million
Interest expense
$3 million
The company faces a 30% tax rate. What is the project’s operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.
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