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McDonalds is evaluating opening a new corporate store that will cost $2.8 million for the building and equipment. They expect to serve 300,000 customers per
McDonalds is evaluating opening a new corporate store that will cost $2.8 million for the building and equipment. They expect to serve 300,000 customers per year. Each customer is expected to spend $9.50 per order. Variable costs are expected to be 65% of revenues and fixed costs are expected to be $150,000 per year. They will depreciate using 3-yr MACRS (.33, .45, .15, .07). Tax rate is 15%. Calculate the YEAR 4 operating cash flow.
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