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A store will cost $ 1 , 0 0 0 , 0 0 0 to open. Variable costs will be 3 3 % of sales

A store will cost $1,000,000 to open. Variable costs will be 33% of sales and fixed costs are $240,000 per year. The investment costs will be depreciated straight-line over the 9 year life of the store to a salvage value of zero. The opportunity cost of capital is 6% and the tax rate is 40%.
Find the operating cash flow if sales revenue is $1,000,000 per year.
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