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Wright Communications is trying to estimate the first-year operating cash flow for a proposed project. The financial sta...

Wright Communications is trying to estimate the first-year operating cash flow for a proposed project. The financial staff has collected the following information:

Financial Item:
Projected Sales $24.42 million
Expenses $15.00 million
Depreciation $5.00 million
Interest Expense $3.00 million


The company faces a 40.00 percent tax rate. What is the project’s operating cash flow for year 1? (answer in units of millions)

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Answer #1

sales less: Costs less: Depreciation EBIT less: Interest less: tax Net income $24.42 $15.00 $5.00 $4.42 $3.00 $0.57 $0.85 Ope

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