Question: I know how to do the first two, how do I find the NPV break-even point in level of sales revenue? A store will cost

I know how to do the first two, how do I find the NPV break-even point in level of sales revenue?

I know how to do the first two, how do I find

A store will cost $975,000 to open. Variable costs will be 39% of sales and fixed costs are $230,000 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 5% and the tax rate is 40%. Find the operating cash flow each year if sales revenue is $650,000 per year. Enter your response below. 120426.315 Correct response: 120,426.32:10 Click "Verify" to proceed to the next part of the question. Using an operating cash flow of 120,426.32, calculate the Net Present Value. Should the store be opened? Enter your response for net present value below. 480390.666 Correct response: 480,390.67+100 Open store Do NOT 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. 2984900.77 Correct response: 541,393.63 100

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