Zepplin Aerospace 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 .......................... $65 million
Operating costs ......................... $39 million
Capital cost allowance ................. $2 million
Interest expense .......................... $1 million
The company faces a 30% tax rate. What is the project's operating cash flow for the first year (t = 1)?