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An entrepreneur is considering buying a new My Pizza Pie franchise. He is currently looking at the yearly cash flows from owning the pizza company.

An entrepreneur is considering buying a new My Pizza Pie franchise. He is currently looking at the yearly cash flows from owning the pizza company. He has estimated the following from talking with company officials:

Plant, Property, and Equipment $100,000.00
Yearly Sales $800,000.00
Cost of Goods Sold 40.00% of sales
Other expenses 25.00% of sales

The PPE for the store will be straight-line depreciated to zero over a 10-year period. If the tax rate is 35.00%, what is the yearly cash flow from the pizza company?

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