To open a new store, Jordan Tire Company plans to invest $392,000 in equipment expected to have a seven -year useful life and no salvage value. Jordan expects the new store to generate annual cash revenues of $316,000 and to incur annual cash operating expenses of $189,000. Jordans average income tax rate is 35 percent. The company uses straight-line depreciation.

Required

Determine the expected annual net cash flows from operations for each of the first four years after Jordan opens the new store.