A marketing research firm with annual cash inflows of 800


Question: A marketing research firm with annual cash inflows of $800 does not expect any growth in annual cash inflows over the next two years. The company, however, anticipates that annual cash outflows, currently at $150 will increase to $210 in year 1 and to $270 in year 2. Assuming the tax rate of 35%, determine the firm's cash flow in YEAR TWO. Assume straight line depreciation of $50 per year.

Place your answer to dollars and cents. Do not include a dollar sign or a comma in your answer.

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Finance Basics: A marketing research firm with annual cash inflows of 800
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