Diane Manufacturing Company is considering investing $500,000 in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $320,000 in cash inflows and $200,000 in cash outflows annually. The company uses straight-line depreciation, and has a 30% tax rate.

Determine the annual estimated net income and net cash inflow.

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(Please enter answer with ONLY numbers - no punctuation, no$ signs, no decimals, no spacing. For negative answers only, enter the answer with "-" at the beginning. For example, -50000)

Accrual Cash Flow Cash Inflows 320,000 320,000 Cash Outflows (200,000) (200,000) Depreciation A. Income before taxes B. Income Tax (30%) C. D. Annual net income E.

Diane Manufacturing Company is considering investing $500,000 in new equipment with an estimated useful life of 10 years and no salvage value. The equipment is expected to produce $320,000 in cash inflows and $200,000 in cash outflows annually. The company uses straight-line depreciation, and has a 30% tax rate. (ALT Exercise A from text publisher) (Please enter answer with ONLY numbers - no punctuation, no $ signs, no spacing. For answers with percentage answers, conver the percentage to the following format: .598) Calculate the Accounting Rate of Return: Accounting rate of return = Annual after-tax net income / Annual average investment