Question: To open a new store, Vernon Tire Company plans to invest $228.000 in equipment expected to have a four-yeor useful life and no salvage value.

To open a new store, Vernon Tire Company plans to invest $228.000 in equipment expected to have a four-yeor useful life and no salvage value. Vemon expects the new store to generate annual cash revenues of $317 , 000 and to incur annual cash operating expenses of $191 , 000 . Vernon's average income tax rate is 30 percent. The company uses stroightine depreciation. Required Determine the expected annual net cash inflow from operations for each of the fitst four years atter Vemon opens the new store. Note: Negetive omounts should be indicsted by a minus sign
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