Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

answer the lase break-even question thanks A store will cost $700,000 to open Variable costs will be 33% of sales and fixed costs are $130,000

answer the lase break-even question thanks image text in transcribed
image text in transcribed
A store will cost $700,000 to open Variable costs will be 33% of sales and fixed costs are $130,000 per year. The investment costs will be depreciated straight-line over the 10 year ife of the store to a salvage value of zero. The opportunity cost of capital is 9% and the tax rate is 35%. Find the operating cash flow each year it sales revenue is $900,000 per year. Enter your response below 331950 Correct response: 331,956+10 Click "Verity to proceed to the next part of the question Using an operating cash flow of 331,950, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. 143078 6 Correct response: 1,430,341.47:10 o Open store DO NOT 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

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Enhancing Financial Inclusion Through Islamic Finance Volume II

Authors: Abdelrahman Elzahi Saaid Ali , Khalifa Mohamed Ali , Mohamed Hassan Azrag

1st Edition

3030399389,3030399397

More Books

Students also viewed these Finance questions

Question

Identify and discuss the four kinds of quality costs.

Answered: 1 week ago

Question

2. Will this information still be valid 30 years from now?

Answered: 1 week ago