A gym owner is considering opening a location on the other side of town. The new facility will cost $1.37 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $539,000 in annual sales. Variable costs are 51 percent of sales, the annual fixed costs are $86,500, and the tax rate is 21 percent. What is the operating cash flow?

A gym owner is considering opening a location on the other side of town. The new facility will cost $1.37 million and will be depreciated on a straight-line basis over a 20y ear period. The new gym is expected to generate $539,000 in annual sales. Variable costs are 51 percent of sales, the annual fixed costs are $86,500, and the tax rate is 21 percent. What is the operating cash flow? Multiple Choice $98,444 $175,066 $154,697 $205,010 $298,900