Trying to estimate first-year operating cash flow

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Reference no: EM13944438

Pinkon Communications is trying to estimate first-year operating cash flow (at t = 1) for a proposed project. The financial staff has collected the following information:

Projected sales $20

Operating costs (excluding depreciation) 15

Depreciation 4

Interest expense 2

The company faces a 40 percent tax rate. What is the project’s operating cash flow for the first year (t = 1)?

Reference no: EM13944438

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