The financial staff of Cairn Communications has identified the following information for the first year of the roll-out of its new proposed service. Projected sales $18 million
Operating costs (not including depreciation $ 9 million
Depreciation $ 4 million
Interest expense $ 3 million

The company faces a 40% tax rate. What is the project's operating cash flow for the first year (t=1)?

Bond x is noncallable and has 20 years to maturity, a 7% annual coupon, and a $1,000 par value. your required return on bond x is 10%; if you buy it, you plan to hold it for 5 years. you (and the market) have expectations that in 5 years, the yield to maturity on a 15-year bond with similar risk will be 9.5%. how much should you be willing to pay for bond x today? (hint: you will need to know how much the bond will be worth at the end of 5 years.) do not round intermediate calculations. round your answer to the nearest cent.

Chuck, a single taxpayer, earns $80,750 in taxable income and $30,750 in interest from an investment in city of heflin bonds. (use the u.s. tax rate schedule.) (do not round intermediate calculations. round your answers to 2 decimal places.)

Which plan offers a tax-free education?