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To open a new store Linton Tire Company plans to invest $342,000 and Equipment expected to have a 6-year useful life and no salvage value.
To open a new store Linton Tire Company plans to invest $342,000 and Equipment expected to have a 6-year useful life and no salvage value. Linton expect the new store to generate annual cash revenues of $323,000 and to incur annual cash operating expenses of $188,000. linton's average income tax rate is 35% the company uses straight-line depreciation. determine the expected annual net cash inflow outflow for each of the first four years after Linton opens the new store.. ( the year one outflow is not 207000)
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