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Project's operating cash flow for 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% tax rate. What is the project's operating cash flow for the first year (t = 1)?

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The solution explains how to calculate the project's operating cash flow for the first year

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Operating cash flow does not take into account the interest and is ...

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