1. A store will cost $1,000,000 to open. Variable costs will be 37% of sales and fixed costs are $170,000 per year. The investment costs will be depreciated straight-line over the 5 year life of the store to a salvage value of zero. The opportunity cost of capital is 13% and the tax rate is 25%.

Find the operating cash flow if sales revenue is $950,000 per year.