The financial staffs of cairn communications have, Ask an Expert

Finance

The financial staffs of Cairn Communications have identified the following information for the first year of the roll-out of its new proposed service.

Projected sales $18 million

Operating costs (not including depreciation $ 9 million

Depreciation $ 4 million

Interest expense $ 3 million

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

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91382312

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