mation and Risk Analysis Back to Assignment Attempts: 0 Keep the Highest: 0/4 1. Problem 12.02 Click here to read the eBook: Analysis of an Expansion Project PROJECT CASH FLOW Colden 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 projec Sales revenues $10 million Operating costs (excluding depreciation) 7 million Depreciation 2 million Interest expense 2 million 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 2. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar. Tre project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part around your swer to th The fom's project's cash flow would now be nearest dollar cynore part b. If the tax rate dropped to 30%. how would that change your answer to parta? Round your answer to the nearest dollar The firm's project's cash flow would select by Study Tools Alle Krep the Highest 0/4 1. Problem 12.02 Ons es Tips Tips care to read the book of an Expansion Project PROJECT CASH FLOW Coleen Communitions 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 $10 million Operating costs (excluding depreciation) 7 milion Depreciation 2 mon Interest Expense 2 million The company has a 40 tax rate, and its WACC is 14% a FREE Unlimited mited Write out your completely. For example, 13 million should be entered as 13,000,000 What is the project's cash flow for the first year (t-1) Round your answer to the nearest dollar 6. this project would carballe other projects by $1 milion of cash flow before taxes per year, how would this change your answer to parta? Round your answer to the The firm's project's cash flow would now be c.Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part around your answer to the nearest dollar The firm's project's cash flow would select by