A store will cost $875,000 to open. Variable costs will be 51% of sales and fixed costs are $210,000 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 8% and the tax rate is 40%.

Find the operating cash flow each year if sales revenue is $700,000 per year.

Using an operating cash flow of 118,688.89, calculate the Net Present Value. Should the store be opened?

Enter your response for net present value below.