Question: Attempts Do No Harm: /1 8. Problem 12.02 (Project Cash Flow) eBook Colsen on the Sales revenues Operating costs (excluding depreciation) 14 million Depreciation Interest
Attempts Do No Harm: /1 8. Problem 12.02 (Project Cash Flow) eBook Colsen on the Sales revenues Operating costs (excluding depreciation) 14 million Depreciation Interest expense The company has a 409, tax rate, and its wACC is 12%. Write out your answers completely. For example, 13 mililion should be entered as 13,000,000 $20 million a. What is the project's operating cash flow for the first year th 1)2 Round your answer to the nearest dollar b. If this project would cannibalize other projects by $2 million of cash fow before taxes per year how would this change your answer to part a7 Round your answer to the nearest dollar The firm's OCF would now be $ wer to part a? Round your answer to the nearest doliar ignore Part b. I, the tax rate dropped to 30%, how would that change your ans The firm's operating cash flow would Saleet e by $ 6 5
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