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A sports game company with current sales of $400,000 does not expect any growth in sales for the next two years. The company, however, anticipates

A sports game company with current sales of $400,000 does not expect any growth in sales for the next two 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 cash flow in year two. Assume annual depreciation is $20,000.

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