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To open a new store, Gibson Tire Company plans to invest $ 3 0 6 , 0 0 0 in equipment expected to have a
To open a new store, Gibson Tire Company plans to invest $ in equipment expected to have a sixyear useful life and no salvage value. Gibson expects the new store to generate annual cash revenues of $ and to incur annual cash operating expenses of $ Gibson's average income tax rate is percent. The company uses straightline depreciation.
Required
Determine the expected annual net cash inflow from operations for each of the first four years after Gibson opens the new store.
Note: Negative amounts should be indicated by a minus sign.
tableNet cash,Inflow or OuttlowYear Year Year Year
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