Problem $11-02($Project Cash Flow$)$

Project Cash Flow

The financial staff of Cairn Communications has identified the following information for the first year of the roll$-$out of its new proposed service:

$\backslash$table$[[$Projected sales,$$24$ million$],[$Operating costs $($not including depreciation$),$$$11$ million$],[$Depreciation$,$$$4$ million$],[$Interest expense,$$5$ million$]]$

The company faces a $25\%$ tax rate. What is the project's operating cash flow for the first year