Cairn Communications 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 Operating costs (not including depreciation) Depreciation Interest expense $10 million $ 7 million $ 2 million $ 2 million The company faces a 40% tax rate. What is the project ' s operating cash flow for the first year (t = 1)? Page(s): 459, Financial Management: Theory & Practice by Eugene F. Brigham