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A store will cost $700,000 to open. Variable costs will be 58% of sales and fixed costs are $190,000 per year. The investment costs will
A store will cost $700,000 to open. Variable costs will be 58% of sales and fixed costs are $190,000 per year. The investment costs will be depreciated straight-line over the 10 year life of the store to a salvage value of zero. The opportunity cost of capital is 8% and the tax rate is 25%. Find the operating cash flow if sales revenue is $750,000 per year. Enter your response below. Number
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