A gym owner is considering opening a location on the other side of town. The new...

 

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A gym owner is considering opening a location on the other side of town. The new facility will cost $1.47 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $559,000 in annual sales. Variable costs are 49 percent of sales, the annual fixed costs are $90,500, and the tax rate is 21 percent. What is the operating cash flow? Multiple Choice O C $91,151 $334,200 $219,580 $201,929 $169,161 A gym owner is considering opening a location on the other side of town. The new facility will cost $1.47 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $559,000 in annual sales. Variable costs are 49 percent of sales, the annual fixed costs are $90,500, and the tax rate is 21 percent. What is the operating cash flow? Multiple Choice O C $91,151 $334,200 $219,580 $201,929 $169,161

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