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To open a new store, Jordan Tire Company plans to invest $ 3 3 0 , 0 0 0 in equipment expected to have a

To open a new store, Jordan Tire Company plans to invest $330,000 in equipment expected to have a six-year useful life and no salvage value. Jordan expects the new store to generate annual cash revenues of $325,000 and to incur annual cash operating expenses of $190,000. Jordans 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 Jordan opens the new store.

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