What is the operating cash flow

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Reference no: EM132020283

A gym owner is considering opening a location on the other side of town. The new facility will cost $1.46 million and will be depreciated on a straight-line basis over a 20-year period. The new gym is expected to generate $557,000 in annual sales. Variable costs are 50 percent of sales, the annual fixed costs are $90,100, and the tax rate is 0 percent. What is the operating cash flow.

Reference no: EM132020283

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