Question: A store will cost $700,000 to open. Variable costs will be 41% of sales and fixed costs are $110,000 per year. The investment costs will
A store will cost $700,000 to open. Variable costs will be 41% of sales and fixed costs are $110,000 per year. The investment costs will be depreciated straight-line over the 17 year lite of the store to a salvage value of zero. The opportunity cost of capital is 11% and the tax rate is 35% Find the operating cash flow each year it sales revenue is $850,000 per year. Enter your response below. 192186.8 Correct responset 192,186.7710 Click "Verity" to proceed to the next part of the question Using an operating cash flow of 192,186.77, calculate the Net Present Value Should the store be opened? Enter your response for net present value below, Number Open store Do NOT open store Click "Verity to proceed to the next part of the question Section Attempt 1 of 1 Verify
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