Carlita’s Tasty Tacos is considering opening a new location…
Carlita’s Tasty Tacos is considering opening a new location in the large city that currently has two other locations. The combined sales at the other two locations are $1,245,000 annually. The new location is expected to generate sales of $450,000 in the first year with 4% sales growth per year for the next 7 years. If the operating profit margin is 40% and the tax rate is 10%, what is the net after-tax cash flow for the new unit for the first year of operations?
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