Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A gym owner is considering opening a location on the other side of town the new facility will cost $1.49 million and will be depreciated

A gym owner is considering opening a location on the other side of town the new facility will cost $1.49 million and will be depreciated on a straight line basis over a 20 year. The new gym is expected to generate $563,000 in annual sales. Variable costs are 47% of sales, the annual fixed cost are $91,300 and the tax rate is 21%. What is the operating cash flow?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What are the main features of alternative strategic approaches?

Answered: 1 week ago