Exercise 10-8A (Algo) Determining the cash flow annuity with income tax considerations LO 10-2 To open a new store, Vernon Tire Company plans to invest $399,000 in equipment expected to have a seven-year useful life and no salvage value Vernon expects the new store to generate annual cash revenues of $316,000 and to incur annual cash operating expenses of $189,000 Vernon's average income tax rate is 40 percent. The company uses straight-line depreciation Required Determine the expected annual net cash inflow from operations for each of the first four years after Vernon opens the new store. (Negative amounts should be indicated by a minus sign.) Intlow Outflow We Ya