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To open a new store, Linton Tire Company plans to invest $420,000 in equipment expected to have a seven-year useful life and
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Answer #1
Cash revenue 318,000
Cash expense -192,000
Cash surplus 126,000
Depreciation expense -60,000
Profit before tax 66,000
Tax expense -19,800
Profit after tax 46,200
Depreciation expense 60,000
Annual Cash Inflow $106,200
Net Cash Inflow/Outflow
Year 1 106,200 Inflow
Year 2 106,200 Inflow
Year 3 106,200 Inflow
Year 4 106,200 Inflow

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