Question: 2. Problem 12.02 (Project Cash Flow) financial staff has collected the following information on the project: Sales revenues $15 million Operating costs 13.5 million Interest

2. Problem 12.02 (Project Cash Flow) financial staff has collected the

2. Problem 12.02 (Project Cash Flow) financial staff has collected the following information on the project: Sales revenues $15 million Operating costs 13.5 million Interest expense 3 million The company has a 25% tax rate, and its WACC is 10%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project's operating cash flow for the first year (t=1) ? Round your answer to the nearest dollar. $ The firm's OCF would now be $

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