Question: b A store will cost $825,000 to open. Variable costs will be 53% of sales and fixed costs are $190,000 per year. The investment costs

 b A store will cost $825,000 to open. Variable costs will

b

be 53% of sales and fixed costs are $190,000 per year. The

A store will cost $825,000 to open. Variable costs will be 53% of sales and fixed costs are $190,000 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 13% and the tax rate is 30%. Find the operating cash flow if sales revenue is $950,000 per year Enter your response below. Click "Verify" to proceed to the next part of the question. Section Attempt 1 of 1 1 point A project has revenues of $78,000, expenses of $43,000, and depreciation of $10,000. The corporate tax rate is 35%. What is the operating cash flow? Enter your response below

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!