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A store will cost $750,000 to open. Variable costs will be 38% of sales and fixed costs are $120,000 per year. The investment costs will
A store will cost $750,000 to open. Variable costs will be 38% of sales and fixed costs are $120,000 per year. The investment costs will be depreciated straight-line over the 20 year life of the store to a salvage value of zero. The opportunity cost of capital is 5% 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. 268125 Correct response: 268,12510 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 268,125, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. 2591430.15 Correct response: 2,591,430.14+100 Do NOT open store Open store Correct response: Open store Click "Verify" to proceed to the next part of the question. Find the net present value break-even level of sales revenue Enter your response below. Number Click "Verify" to proceed
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