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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.39 million and will be depreciated
A gym owner is considering opening a location on the other side of town. The new facility will cost $1.39 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $543,000 in annual sales. Variable costs are 53 percent of sales, the annual fixed costs are $87,300, and the tax rate is 35 percent. What is the operating cash flow? Multiple Choice O $83,094 O $192.235 $133,467 O $178.642 O $320,530
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