Nixon Communications is trying to estimate the first-year operating cash flow (at t _ 1) for a…
Nixon 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
10,000,000
Operating costs (not including depreciation)
7,000,000
Depreciation
2,000,000
Interest expense
2,000,000
The company faces a 40% tax rate. What is the project’s operating cash flow for the first year (t _ 1)?
