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Diane Manufacturing Company is considering investing USD 600,000 in newequipment with an estimated useful life of 10 years and no salvage value. The equipment is

Diane Manufacturing Company is considering investing USD 600,000 in newequipment with an estimated useful life of 10 years and no salvage value. The equipment is expectedto produce USD 240,000 in cash inflows and USD 160,000 in cash outflows annually. The companyuses straight-line depreciation, and has a 40 per cent tax rate. Determine the annual estimated netincome and net cash inflow.

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