assign -12-1

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

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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
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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....
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This note was uploaded on 10/10/2010 for the course ACCT 225 S taught by Professor Webster during the Spring '10 term at Franklin.

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