Question: A store will cost $650,000 to open. Variable costs will be 55% of sales and fixed costs are $180,000 per year. The investment costs will
A store will cost $650,000 to open. Variable costs will be 55% of sales and fixed costs are $180,000 per year. The investment costs will be depreciated straight-line over the 6 year life of the store to a salvage value of zero. The opportunity cost of capital is 13% and the tax rate is 30% Find the operating cash flow if sales revenue is $700,000 per year. Enter your response below. (3 Correct response: 127,0001 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 127,000 , calculate the Net Present Value. Should the store be opened? Enter your response for net present value below
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