1. Fort Wayne Corporation expects the following revenues, cash expenses, and depreciation charges as a result of its recent opening of an affiliated store in Lansing: Year 1 2 3 4 5 Revenues $16,000 $20,000 $38,000 $48,000 $35,000 Cash Expenses 8,000 5,000 14,000 19,000 19,000 Depreciation 3,000 4,000 3,000 3,000 3,000 Fort Wayne is in the 40% tax bracket. Compute the after-tax cash flows from this investment in the Lansing store 2. Right before opening the Lansing store discussed in problem 1, you have discovered that Fort Wayne forgot to budget 10% of revenues as a cash balance, 20% of cash expenses as an inventory balance, and 10% of cash expenses as an accounts payable balance. All of these balances would be needed at the beginning of each year and are estimated from the year-end annual estimates of revenues and cash expenses given earlier. Recalculate the cash flows for the Lansing store investment. (The first student who gets the correct answer will receive one extra point!) 1. Fort Wayne Corporation expects the following revenues, cash expenses, and depreciation charges as a result of its recent opening of an affiliated store in Lansing: Year 1 2 3 4 5 Revenues $16,000 $20,000 $38,000 $48,000 $35,000 Cash Expenses 8,000 5,000 14,000 19,000 19,000 Depreciation 3,000 4,000 3,000 3,000 3,000 Fort Wayne is in the 40% tax bracket. Compute the after-tax cash flows from this investment in the Lansing store 2. Right before opening the Lansing store discussed in problem 1, you have discovered that Fort Wayne forgot to budget 10% of revenues as a cash balance, 20% of cash expenses as an inventory balance, and 10% of cash expenses as an accounts payable balance. All of these balances would be needed at the beginning of each year and are estimated from the year-end annual estimates of revenues and cash expenses given earlier. Recalculate the cash flows for the Lansing store investment. (The first student who gets the correct answer will receive one extra point!)