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Project cash flow eisenhower communications

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Reference no: EM131035760

PROJECT CASH FLOW Eisenhower Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

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The company has a 40% tax rate, and its WACC is 10%.
a. What is the project's cash flow for the first year (t = 1 ?
b. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to Part a?
c. Ignore Part b. If the tax rate dropped to 30%, how would that change your answer to Part a?

Reference no: EM131035760

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