Business, 08.11.2019 03:31, benoitjaylewe

Colsen communications is trying to estimate the first-year cash flow (at year 1) for a proposed project. the financial staff has collected the following information on the project: 12-2 sales revenues operating costs (excluding depreciation) depreciation interest expense $15 million 10.5 million 3 million 3 million the company has a 40% tax rate, and its wacc is 11%. a. what is the project's cash flow for the first year (t = 1)? b. if this project would cannibalize other projects by $1.5 million of cash flow before taxes per year, how would this change your answer to part a? c. ignore part b. if the tax rate dropped to 30%, how would that change your answer to part a?

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Colsen communications is trying to estimate the first-year cash flow (at year 1) for a proposed proj...