The thomsons will buy a maintenance contract that

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The Thomsons will buy a maintenance contract that calls for annual payments of $120. Create an incremental operating cash flow statement for the replacement of Richard and Linda’s John Deere riding mower. Show the incremental operating cash flow for the next 6 years. 20 8
Year 2 Year 3 Year 4 Year 5 Year 6 500 500 500 500 0 120 120 120 120 0 380 380 380 380 0 576 342 216 216 90 -196 38 164 164 -90 -78 15 66 66 -36 -118 23 98 98 -54 576 342 216 216 90 458 365 314 314 36
Relevant cash flows for a marketing campaign Marcus Tube, a manufacturer of high-quality aluminum tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 3% per year, Marcus has been unsuccessful in sharing this growth. To increase its sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and web sites and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual tax-deductible expenditure of $150,000 over the next 5 years. Sales revenue, as shown in the accompanying income statement for 2015, totaled $20,000,000. If

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