- A marketing research firm with current sales of $400,000 does not expect any growth in sales for the next 2 years. The company, however, anticipates that expenses, currently at $200,000, will increase to $210,000 next year and to $220,500 the year after. Assuming a tax rate of 34%, determine the firms current after-tax cash flow as well as projected after-tax cash flow over the next 2 years. Assume there is no depreciation.

- A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $2 million and are expected to be $2.1 million next year and $3.08 million the year after. Assuming that expenses are 80% of sales each year, what are the distributors current after-tax cash flows and projected after-tax cash flows next year and the year after if the tax rate is 34%? Assume there is no depreciation.