A marketing research firm with current sales of $800 does not expect any growth in sales for the next two years.

A marketing research firm with current sales of $800 does not expect any growth in sales for the next two years. The company, however, anticipates that expenses, currently at $160 will increase to $220 in year 1 and to $290 in year 2. Assuming the tax rate of 34%, determine the firm’s cash flow in YEAR TWO. Assume straight line depreciation of $50.

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