Question: A store will cost $750,000 to open. Variable costs will be 43% of sales and fixed costs are $100,000 per year. The investment costs will

 A store will cost $750,000 to open. Variable costs will be

A store will cost $750,000 to open. Variable costs will be 43% of sales and fixed costs are $100,000 per year. The investment costs will be depreciated straight-line over the 17 year life of the store to a salvage value of zero. The opportunity cost of capital is 12% and the tax rate is 35%. Find the operating cash flow each year if sales revenue is $800,000 per year. Enter your response below. 246841.2 Correct response: 246,841.18010 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 246,841.18, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. Number Do NOT open store Open store

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