Colsen Communications Is Trying To Estimate The First-year Cash Flow (at Year 1) For A Proposed Project. The Assets Required For The Project Were Fully Depreciated At The Time Of Purchase. The Financial Staff Has Collected The Following Information On The Project: Sales Revenues $25 Million Operating Costs 22.5 Million Interest Expense 3 Million The Company Has A 25% Tax Rate, And Its WACC Is 10%. Write Out Your Answers Completely. For Example, 13 Million Should Be Entered As 13,000,000. A. What Is The Project's Operating Cash Flow For The First Year (t = 1)? Round Your Answer To The Nearest Dollar. $ ____ 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? Round Your Answer To The Nearest Dollar.

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project: Sales revenues $25 million Operating costs 22.5 million Interest expense 3 million The company has a 25% tax rate, and its WACC is 10%. Write out your answers completely. For example, 13 million should be entered as 13,000,000. a. What is the project’s operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar. $ ____ 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? Round your answer to the nearest dollar.

- August 19, 2022 - Edwin Tunner

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The assets required for the project were fully depreciated at the time of purchase. The financial staff has collected the following information on the project:

Sales revenues	$25 million
Operating costs	22.5 million
Interest expense	3 million

The company has a 25% tax rate, and its WACC is 10%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

a. What is the project’s operating cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
$ ____

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? Round your answer to the nearest dollar.
The firm’s OCF would now be $ ____

Tired of numerous paper assignments?

Rely on us and receive professional paper writing assistance!

Order Now

Who We Are

We are a professional website for customized writing. If you searched a question and stumbled into our website, you are in the right place to receive assistance with your coursework.

Do you handle any type of coursework?

Yes. We have displayed prior orders to demonstrate our experience. We can answer this question for you as we have previously. Please fill out our Order Form so that we may ensure its flawlessness. Correctly completing the order form will help our staff with reference, requirements, and future communication.

Is it hard to Place an Order?

Click on the “Order Now” tab at the top menu or “GET A FREE QUOTE” icon at the bottom and a new page will appear with an order form to be filled
Fill in the initial requirements in the small order form located on the home page and press “continue” button to proceed to the main order form or press “order” button in the header menu. Starting from there let our system intuitively guide you through all steps of ordering process. Submit detailed paper instructions, upload necessary files if needed and provide your contact information – you are almost done!
Proceed with the payment- click on “PROCEED TO CHECKOUT” at the bottom of the page. From there, the payment sections will show, follow the guided payment process and your order will be available for our writing team to work on it. All your payments are processed securely through PayPal. This enables us to guarantee a 100% security of your funds and process payments swiftly.
Delivery- Once finished, your final paper will be available for download through your personal dashboard. You will also receive an email notification with a copy of your paper attached to it.