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A store will cost $ 7 5 0 , 0 0 0 to open. Variable costs will be 3 8 % of sales and fixed

A store will cost $750,000 to open. Variable costs will be 38% of sales and fixed costs are $250,000 per year. The investment costs will be depreciated
straight-line over the 19 year life of the store to a salvage value of zero. The opportunity cost of capital is 11% and the tax rate is 25%.
Find the operating cash flow each year if sales revenue is $750,000 per year.
Enter your response below.
Correct response: 171,118.42+-10Using an operating cash flow of 171,118.42, calculate the Net Present Value. Should the store be opened?
Enter your response for net present value below.
591,447.64
Correct response: 591,447.65+-100
Find the net present value break-even level of sales revenue
Enter your response below.
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