Exercise 10-8A (Algo) Determining the cash flow annuity with income tax considerations LO 10-2 To open a new store, Solomon Tire Company plans to invest $306,000 in equipment expected to have a six -year useful life and no salvage value. Solomon expects the new store to generate annual cash revenues of $320,000 and to incur annual cash operating expenses of $192,000. Solomon's average income tax rate is 35 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 Solomon opens the new store. |(Negative amounts should be indicated by a minus sign.) Inflow/Outflow Net cash Year 1 Year 2 Year 3 Year 4