Solution-Find the operating cash flow each year

Find the operating cash flow each year

Reference no: EM132761618

Question: A store will cost $750,000 to open. Variable costs will be 50% of sales and fixed costs are $190,000 per year. The investment costs will be depreciated straight-line over the 12 year life of the store to a salvage value of zero. The opportunity cost of capital is 5% and the tax rate is 35%. Find the operating cash flow each year if sales revenue is $1,000,000 per year.

Reference no: EM132761618

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Find the operating cash flow each year

Reference no: EM132761618

Reference no: EM132761618

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