FI515 Financial Management Week 5: 11-2 Cairn Communications is trying
FI515 Financial Management Week 5 Homework
11-2 Operating Cash flow Cairn Communications is trying to estimate the first-year operating cash flow (at t=1) for a proposed project. The financial staff has collected 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)?