What are the distributor current after-tax cash flows

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Problem 1: A distributor of computer software instruction manuals plans to expand distribution. Annual sales are currently $2 million and are expected to be $2.1 million next year and $3.08 million the year after. Assuming that expenses are 80% of sales each year, what are the distributor's current after-tax cash flows and projected after-tax cash flows next year and the year after if the tax rate is 34%? Assume there is no depreciation.

Reference no: EM132778348

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