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1. 2. A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $250000 and are expected to be $320000 one

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A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $250000 and are expected to be $320000 one year from today. Assuming that expenses are 80% of sales each year, what is the cash flow one year from today if the tax rate is 34%? Assume straight line depreciation of $25,000. Place your answer to the nearest dollar. Do not include a dollar sign or a comma in your answer. A firm has invested S900 in a new machine that is expected to generate cash flows over the next 7 years. The machine will be depreciated on a straight line basis down to zero by the end of its life. The firm projects their annual cash inflows at $650 per year and annual cash outflows at 300 per year. Assuming the tax rate of 34%, determine the firm's cash flow next year. Place your answer to dollars and cents. Do not include a dollar sign or a comma in your answer. CHECK

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