To open a new store, Vernon Tire Company plans to invest $250,000 in equipment expected to have a five -year useful life and no salvage value. Vernon expects the new store to generate annual cash revenues of $322,000 and to incur annual cash operating expenses of $187,000. Vernons 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 Vernon opens the new store.