A device has an initial cost of $896,000 and a GDS property life of 7 years. Depreciation of this particular equipment started in year 0, using the MACRS method with the standard half year convention. During year 4, the company received $417,000 in revenue and spent $241,000 in operating expenses. What is the annual cash flow in Year 4, assuming that depreciation is the only book deduction? The income tax rate at this particular operation is 21%.
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