Nixon Communications Operating Cash Flow for first year
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:
Project sales $10 million
Operating costs (not including depreciation) $7 million
Depreciation $2 million
Interest expense $2 million
The company faces a 40% tax rate. What is the project’s operating cash flow for the first year (t = 1)?