Question: Colsen Communications is trying to estimate the first - year cash flow ( at Year 1 ) for a proposed project. The financial staff has

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:
Sales revenues
$20 million
Operating costs (excluding depreciation)14 million
Depreciation
4 million
Interest expense
4 million
The company has a 40% tax rate, and its WACC is 11%.
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
Colsen Communications is trying to estimate the first-year cash flow (at

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