Question: A store will cost $800,000 to open. Variable costs will be 60 percent of sales and fixed costs are $200,000 per year. The investment will

 A store will cost $800,000 to open. Variable costs will be

A store will cost $800,000 to open. Variable costs will be 60 percent of sales and fixed costs are $200,000 per year. The investment will be depreciated straight-line over the 10 yearlife of the store to a salvage value of zero. The opportunity cost of capital is 8 percent and the tax rate is 30 percent. Find the net present value break- even level of sales revenues. $700,000 $840,085 $925,799 $1,125,799

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