Find the operating cash flow

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A store will cost $625,000 to open. Variable costs will be 56% of sales and fixed costs are $210,000 per year. The investment costs will be depreciated straight-line over the 16 year life of the store to a salvage value of zero. The opportunity cost of capital is 7% and the tax rate is 35%.

Find the operating cash flow each year if sales revenue is $950,000 per year.

Reference no: EM132951870

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