Determine the firm current after-tax cash flow

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Problem 1: A marketing research firm with current sales of $400,000 does not expect any growth in sales for the next 2 years. The company, however, anticipates that expenses, currently at $200,000, will increase to $210,000 next year and to $220,500 the year after. Assuming a tax rate of 34%, determine the firm's current after-tax cash flow as well as projected after-tax cash flow over the next 2 years. Assume there is no depreciation.

Reference no: EM132778351

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