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2 . Abercombie and Fitch has working capital requirements that amount 8 % of revenues and invests in working capital at the beginning of each

2. Abercombie and Fitch has working capital requirements that amount 8% of revenues and invests in working capital at the beginning of each year. Furthermore, half of the selling advertising expenses each year fixed and are not expected to change with the number of stores. Estimate the expected after-tax operating cash flows on the new store for Abercombie and Fitch each year for the next five years.

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