PROJECT CASH FLOW Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for...

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Finance

PROJECT CASH FLOW
Colsen Communications is trying to estimate the first-year cashflow (at Year 1) for a proposed project. The financial staff hascollected the following information on the project:
Sales revenues $15 million
Operating costs (excluding depreciation) 10.5 million
Depreciation 3 million
Interest expense 3 million
The company has a 40% tax rate, and its WACC is 13%.
Write out your answers completely. For example, 13 millionshould be entered as 13,000,000.
What is the project's cash flow for the first year (t = 1)?Round your answer to the nearest dollar.
$

If this project would cannibalize other projects by $1.5million of cash flow before taxes per year, how would this changeyour answer to part a? Round your answer to the nearestdollar.
The firm's project's cash flow would now be $ .

Ignore part b. If the tax rate dropped to 30%, how would thatchange your answer to part a? Round your answer to the nearestdollar.
The firm's project's cash flow would -Select- increase ordecrease
by $

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PROJECT CASH FLOWColsen Communications is trying to estimate the first-year cashflow (at Year 1) for a proposed project. The financial staff hascollected the following information on the project:Sales revenues$15 millionOperating costs (excluding depreciation)10.5 millionDepreciation3 millionInterest expense3 millionThe company has a 40% tax rate, and its WACC is 13%.Write out your answers completely. For example, 13 millionshould be entered as 13,000,000.What is the project's cash flow for the first year (t = 1)?Round your answer to the nearest dollar.$If this project would cannibalize other projects by $1.5million of cash flow before taxes per year, how would this changeyour answer to part a? Round your answer to the nearestdollar.The firm's project's cash flow would now be $ .Ignore part b. If the tax rate dropped to 30%, how would thatchange your answer to part a? Round your answer to the nearestdollar.The firm's project's cash flow would -Select- increase ordecreaseby $

Sales revenues	$15 million
Operating costs (excluding depreciation)	10.5 million
Depreciation	3 million
Interest expense	3 million