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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.42 million and will be depreciated
A gym owner is considering opening a location on the other side of town. The new facility will cost $1.42 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $549,000 in annual sales. Variable costs are 54 percent of sales, the annual fixed costs are $88,500, and the tax rate is 35 percent. What is the operating cash flow?
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