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gym owner is considering opening a location on the other side of town. The new facility will cost $1.54 million and will be depreciated on
gym owner is considering opening a location on the other side of town. The new facility will cost $1.54 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $573,000 in annual sales. Variable costs are 42 percent of sales, the annual fixed costs are $93,300, and the tax rate is 25 percent. What is the operating cash flow? Multiple Choice $198,530 $256,280 $258,290 $379,025 $79,010
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