Project Cash Flow 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: 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 11%. What is the project’s cash flow for the first year ? 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? Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a? a.$3,900,000 b.$3,000,000 c.$4,050,000; Δ = +$150,000