Question: Telewitz communication is trying to estimate the first year operating cash flow (at t=1) for a proposed project. The financial staff has collected the following

Telewitz communication is trying to estimate the first year operating cash flow (at t=1) for a proposed project. The financial staff has collected the following information.

Projected sales $10,000,000

Operating costs( not including depreciation) $7,000,000

Depreciation $2,000,000

Interest expense $2,000,000

The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t=1)?

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