Problem 12-2 Project cash flow Eisenhower Communications trying to estimate the first-year net operating cash flow (at Year for a proposed project. The financial staff has collected the following information on the project: Sales revenues $5 million 3.5 million Operating costs (excluding depreciation) Depreciation 1 million Interest expense 1 million The company has a 40% tax rate , and its WACC i 10%. for the first year = 1)? Round your answer a. What is the project's operating cash the nearest cent. b. If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest cent. The firm's OCF would now be f the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest cent. The firm's operating cash flow would -Select- #by $ C. Problem 12-2 Project cash flow ) for a proposed project. The financial staff has collected the following information on the project: Eisenhower Communications is trying to estimate the first-year net operating cash flow (at Year Sales revenues $5 million Operating costs (excluding depreciation) 3.5 million Depreciation million Interest expense million The company has 40% tax rate, and its WACC 10%. the nearest cent. What is the project's operating cash flow for the first year (t 1)? Round vour answer part a? Round your answer to the nearest cent. b. If this project would cannibalize other projects by $0.5 million of cash flow before taxes per year, how would this change your answer The firm's OCF would nov be $ ge your answer to part a? Round your answer to the nearest cent. The firm's ooerating.cash Bow wou -Select increase decrease