Question: Colsen Communications is trying to estimate the first-year net operating cash flow (at Year 1 ) for a proposed project. The firancial staff has collected
Colsen Communications is trying to estimate the first-year net operating cash flow (at Year 1 ) for a proposed project. The firancial staff has collected the following information on the project: The company has a 40% tax rate, and its wacc is 14%. 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. s b. If this project would cannibaline other projects by $2 million of cash flow before taxes por year, how would this change your answer to part a? Round your answer to the nearest dollar: The firm's ocr would now be $ C. Ignore Part b. If the tax rate dropped to 35%, how would that chanee vour answer to part a? Round your answer to the nearest dollar. The firm's operating cash flow would by 5
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