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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.40 million and will be depreciated

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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.40 million and will be depreciated on a straight-ine basis over 20-year period. The new gym is expected to generate $545.000 in annual sales. Variable costs are 54 percent of sales, the annual fixed costs are $87,700, and the tax rate is 40 percent. What is the operating cash flow? Multiple Choice $11,000 5167,800 $93.200 $302.380 $125.800

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