Question: please be thorough and I will like and support Colsen Communications is trying to estimate the first year cash flow (at Year 1) for a
Colsen Communications is trying to estimate the first year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs 20 million Interest expense 2 million The company has a 25% tax rate, and its WACC is 10% Write out your answers completely. For example, 13 million should be entered as 13,000,000 What is the project's operating cash flow for the first year (t-1) Round your answer to the nearest dolor. b. If this project would combatere other projects by 80,5 million of cash flow before Boxes per year, how would this change your answer to part ay sound your answer to the nearest dollar The firm's OCF would now be $
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
