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A store will cost $1,000,000 to open. Variable costs will be 37% of sales and fixed costs are $170,000 per year. The investment costs will
A store will cost $1,000,000 to open. Variable costs will be 37% of sales and fixed costs are $170,000 per year. The investment costs will be depreciated straight-line over the 5 year life of the store to a salvage value of zero. The opportunity cost of capital is 13% and the tax rate is 25%. Find the operating cash flow if sales revenue is $950,000 per year. Enter your response below. 371375 Correct response: 371,3751 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 371,375, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. Number O open store O NOT open store Click "Verify" to proceed
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