Question: Can someone please help me with practice questions. I keep messing it up somewhere along the way. A store will cost $900,000 to open. Variable


Can someone please help me with practice questions. I keep messing it up somewhere along the way.


A store will cost $900,000 to open. Variable costs will be 60% of sales and fixed costs are $250,000 per year. The investment costs will be depreciated straight-line over the 8 year life of the store to a salvage value of zero. The opportunity cost of capital is 13% and the tax rate is 35%. Find the operating cash flow each year if sales revenue is $600,000 per year. Enter your response below. 32875 0 Correct response: 32.815110 Click "Verify" to proceed to the next part of the question. 0 Using an operating cash flow of 32,875, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. -742240.43 0 Correct response: -142 , 240 . 431100 Open store ; Do NOT open store 0 Correct response: DO "01' open store Find the net present value break-even level of sales revenue Enter your response below. Number Click "Verify" to proceed
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