Operating cash flow for a proposed project

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Reference no: EM1343665

Operating Cash Flow for a Proposed Project

Estimate the first-year operating cash flow (at t=1) for a proposed project. The financial staff has collected the following information:

Projected Sales - 10 million
Operating cost (not including depreciation) - 7 million
depreciation - 2 million
interest expense - 2 million

The company faces a 40% rate. What is the projects's operationg cas flow for the first year (t=1)?

Reference no: EM1343665

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