Question: A store will cost $800,000 to open. Variable costs will be 38% of sales and fixed costs are $110,000 per year. The investment costs will

A store will cost $800,000 to open. Variable costs will be 38% of sales and fixed costs are $110,000 per year. The investment costs will be depreciated straight-line over the 15 year life of the store to a salvage value of zero. The opportunity cost of capital is 12% and the tax rate is 25%. Find the operating cash flow if sales revenue is $950,000 per year.

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