Operating Cash Flow for a Proposed Project
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 million
Operating cost (not including depreciation) - 7 million
depreciation - 2 million
interest expense - 2 million
The company faces a 40% rate. What is the projects's operationg cas flow for the first year (t=1)?