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Operating Cash Flow for a Proposed Project

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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)?

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The solution explains how to calculate the operating cash flow for a company in clear steps.

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In calculating the operating cash flow, we do not take into consideration the interest expense. Interest cost ...

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