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Exercise 10-8A (Algo) Determining the cash flow annuity with income tax considerations LO 10-2 o open a new store, Stuart Tire Company plans to Invest
Exercise 10-8A (Algo) Determining the cash flow annuity with income tax considerations LO 10-2 o open a new store, Stuart Tire Company plans to Invest $392,000 in equipment expected to have a seven-year useful Ife and no ialvage value. Stuart expects the new store to generate annual cash revenues of $324,000 and to incur annual cash operating expenses of $186,000. Stuart's average Income tax rate is 40 percent. The company uses straight-line depreciation. requlred Determine the expected annual net cash inflow from operations for each of the first four years after Stuart opens the new store. Note: Negatlve amounts should be Indlcated by a minus sign
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