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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.44 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 $1.44 million and will be depreciated on a straight-line basis over a 20 -year period. The new gym is expected to generate $553,000 in annual sales. Variable costs are 52 percent of sales, the annual fixed costs are $89,300, and the tax rate is 21 percent. What is the operating cash flow? Multiple Choice $200,620 $154,271 $188,252 $84,368 $330,522

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