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A store will cost $ 9 5 0 , 0 0 0 to open. Variable costs will be 4 9 % of sales and fixed
A store will cost $ to open. Variable costs will be of sales and fixed costs are $ per year. The investment costs will be depreciated
straightline over the year life of the store to a salvage value of zero. The opportunity cost of capital is and the tax rate is
Find the operating cash flow if sales revenue is $ per year.
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Using an operating cash flow of calculate the Net Present Value. Should the store be opened?
Enter your response for net present value below.
open store NOT open store
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