The financial staff od carin communications has identified

Question

The financial staff od Carin Communications has identified the fallowing information for the first year of the roll-out of its new proposed services:

Projected sales                                                                      $18 Million

Operating cost (not to including depreciation)                       $9 Million

Depreciation                                                                          $4 Million

Interest expense                                                                    $3 Million

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