Question: A store will cost $850,000 to open. Variable costs will be 30% of sales and fixed costs are $110,000 per year. The investment costs will

 A store will cost $850,000 to open. Variable costs will be

A store will cost $850,000 to open. Variable costs will be 30% of sales and fixed costs are $110,000 per year. The investment costs will be depreciated straight-line over the year life of the store to a salvage value of zero. The opportunity cost of capital is 10% and the tax rate is 25% Find the operating cash flow each year if sales revenue is $850,000 per year. Enter your response below 399166.67 Correct response: 399,166.67718 Click "Verify to proceed to the next part of the question, Using an operating cash flow of 399,188.87, calculate the Net Present Value Should the store be opened? Enter your response for net present value below. 888474.91 Correct response: 898,474.92180 o Open Store Do NOT open store Correct response: Open store Click "Verity to proceed to the next part of the question Find the net present value break-even level of sales revenue Enter your response below. Number Click "Verify to proceed

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