Question: A store will cost $625,000 to open. Variable costs will be 58% of sales and fixed costs are $250,000 per year. The investment costs will

A store will cost $625,000 to open. Variable costs will be 58% of sales and fixed costs are $250,000 per year. The investment costs will be depreciated straight-line over the 12 year life of the store to a salvage value of zero. The opportunity cost of capital is 9% and the tax rate is 25%.

Find the operating cash flow each year if sales revenue is $750,000 per year.

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