{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

assign -12-1 - Car wash Revenue 1-10 57,720.00 5.65 326118...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Problem 12 – 15A Car wash Revenue 57,720.00 Vacuum Revenue 6,734.00 Variable Expense: Car wash -8,850.40 Vacuum -2,693.60 Fixed Expense: Rent -14,400.00 Cleaning -9,360.00 Insurance -720.00 Maintenance -6,120.00 Net Cash Flow 22,310.00 (I am assuming that he is getting the Working capital back at the end of 10 years) item years amount of cash flows 12% present value of cash flows New Equipment now -110000 0.01 -1100 Salvage Value 10 11000 0.32 3520 Working Capital now -1800 0.01 -18 Working Capital return 10 1800 0.32 579.6
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: Car wash Revenue 1-10 57,720.00 5.65 326118 Vacuum Revenue 1-10 6,734.00 5.65 38047.1 Car wash 1-10-8,850.40 5.65-50004.76 Vacuum 1-10-2,693.60 5.65-15218.84 Rent 1-10-14,400.00 5.65-81360 Cleaning 1-10-9,360.00 5.65-52884 Insurance 1-10-720.00 5.65-4068 Maintenance 1-10-6,120.00 5.65-34578 129,033.1 The annual net cash flow is only 22,310 and he should be making atleast 129033.1 to meet the 12% requirement. So he should not open the car wash....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern