Attempts: Keep the Highest 4 1. Problem 12.02 Click here to read the book: Analysis of an Expansion Project PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The fnancial staff has collected the following information on the project: Sales revenues $10 million Operating costs (excluding depreciation) 7 million Depreciation 2 milion Interest expense 2 million The company has a 40% tax rate, and its WACC is 13% Write out your answers completely. For example, 13 million should be entered as 13,000,000 a. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar b. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a Round your answer to the nearest dollar The firm's project's cash flow would now be Ignore part. If the tax rate dropped to 30%, how would that change your answer to part a Round your answer to the nearest dollar, The firm's project's cash flow would let by