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To open a new store, Rooney Tire Company plans to invest $255,000 in equipment expected to have a five-year useful life and no salvage value.
To open a new store, Rooney Tire Company plans to invest $255,000 in equipment expected to have a five-year useful life and no salvage value. Rooney expects the new store to generate annual cash revenues of $319,000 and to incur annual cash operating expenses of $191,000. Rooney's average income tax rate is 30 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 Rooney opens the new store. Note: Negative amounts should be indicated by a minus sign
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