Answered step by step
Verified Expert Solution
Question
1 Approved Answer
looking for botton question Andere il cost $825,000 to oper. Variable costs will be 30% of sales and fixed costs are $100,000 per year. The
looking for botton question
Andere il cost $825,000 to oper. Variable costs will be 30% of sales and fixed costs are $100,000 per year. The investment costs will be depreciated straight- ne over the 17 year ite of the store to a salvage value of zero. The opportunity cost of capital is 13% and the tax rate is 35% Pind the operating cash flow oach year it sales revenue in 5850,000 per year. Enter your response below 339735.29 correct response: 138,735.29+20 Cact "Verity to proceed to the next part of the question, Using an operating cash flow of 338,735 29, calculate the Not Present Value Should the store be opened? Enter your response for net present value below. 1454381.26 Correct response: 1.454,382.292100 Open store Do NOT open store Correct response: Open store Click "Vority 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 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started