A business will cost you $725,000 to open. The variable costs is going to be 31% of sales and fixed costs will be $140,000 every year. The investment costs will be depreciated straight-line over the 17 year life of the store to a salvage value of zero. The opportunity cost of capital is 14% and the tax rate is 25%.

1. Find the operating cash flow each year if sales revenue is $900,000 per year.
2. Using an operating cash flow, calculate the Net Present Value.
3. Should the store be opened? (OPEN/FO NOT OPEN)
4. Find the net present value break-even level of sales revenue