Nixon communications is trying to estimate the first-year

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Nixon Communications is trying to 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 costs (not including depreciation)

$7 million

Depreciation

$2 million

Interest expense

$2 million

The company faces a 40 percent tax rate. What is the project"s operating cash flow for the first year (t= 1)?

Reference no: EM13572828

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