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To open a new store, Linton Tire Company plans to invest $285,000 in equipment expected to have a five -year useful life and no salvage
To open a new store, Linton Tire Company plans to invest $285,000 in equipment expected to have a five -year useful life and no salvage value. Linton expects the new store to generate annual cash revenues of $317,000 and to incur annual cash operating expenses of $190,000. Linton's average income tax rate is 40 percent. The company uses straight-line depreciation. Required Determine the expected annual net cash inflow / outflow from operations for each of the first four years after Linton opens the new store. (Negative amounts should be indicated by a minus sign.) Net cash Inflow / Outflow Year 1 Year 2 Year 3 Year 4
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