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Assume a company is considering investing in opening a new store. The following assumptions are made: - Furniture, fixtures, and teasehold Improvements witl cost $450,000.

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Assume a company is considering investing in opening a new store. The following assumptions are made: - Furniture, fixtures, and teasehold Improvements witl cost $450,000. Company will spend $30,000 to purchase inventory for the grand opening. Company already spent $12,000 in consulting fees. - Company expects to 5ell5,000 units each year for the next sbx years at an average $75 sales price per unit and an average $45 variable cost per unit. Company will incur $70,000 in fixed operating costs each yeat. -Furniture, fixtures, and leasehoid improvements will depreciate on an accelerated basis for tax purposes using a 7 -year MACRS asset life. - Company expects to switch to a different location six years from now and sell the furniture and foxtures for $65,000 before tax and sell through the remaining inventory. - Company's tax rate will be 32%. What is the incremental free cash flow the investment is expected to generate in year 6 that should be considered for capital budgeting purposes? (Do not round intermediate calculations. Round your final answer to the nearest whole dollar Le. 123456. Do not include commas or a dollar sign with your answer.) (Hint You will need OCF, net working capital, and capital spending cash flows.) - Numenc Response

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