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To open a new store, Finch Tire Company plans to invest $250,000 in equipment expected to have a five-year useful life and no salvage value.
To open a new store, Finch Tire Company plans to invest $250,000 in equipment expected to have a five-year useful life and no salvage value. Finch expects the new store to generate annual cash revenues of $322,000 and to incur annual cash operating expenses of $187,000. Finch'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 Finch opens the new store. Note: Negative amounts should be indicated by a minus sign
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