Question: operating cash flow the financial staff of cairn communications has...
Operating Cash Flow
The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service:
|Projected sales||$20 million|
|Operating costs (not including depreciation)||$7 million|
|Interest expense||$3 million|
The company faces a 35% tax rate. What is the project's operating cash flow for the first year (t = 1)? Write out your answer completely. For example, 2 million should be entered as 2,000,000.