Question: A store will cost $950,000 to open. Variable costs will be 35% of sales and fixed costs are $210,000 per year. The investment costs will


A store will cost $950,000 to open. Variable costs will be 35% of sales and fixed costs are $210,000 per year. The investment costs will be depreciated straight-line over the 19 year life of the store to a salvage value of zero. The opportunity cost of capital is 12% and the tax rate is 40%. Find the operating cash flow each year if sales revenue is $950,000 per year. Enter your response below. Correct response: 264,50010 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 264,500 , calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. Correct response: 998,247.98100 Do NOT open store Open store Correct response: Open store Click "Verify" to proceed to the next part of the question. Find the net present value break-even level of sales revenue Enter your response below. Click "Verify" to proceed
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