Question: Please show computations in Excel formula. Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial
Please show computations in Excel formula.
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) | $11.5 million |
| Depreciation | $2 million |
| Interest Expense | $1.2 million |
The company has a 30% tax rate, and its WACC is 11.5%. What is the projects cash flow for the first year (t-1)?
Please show computations in Excel formula.
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