Lin Vu has $186,000 in an investment paying 7 percent taxable interest per annum. Each year Vu incurs $1,295 of expenses relating to this investment. Compute Vus annual net cash flow assuming the following:

Required:

1. Vus marginal tax rate is 10 percent, and the annual expense is not deductible.
2. Vus marginal tax rate is 35 percent, and the annual expense is deductible.
3. Vus marginal tax rate is 25 percent, and the annual expense is not deductible.
4. Vus marginal tax rate is 40 percent, and only $780 of the annual expense is deductible.