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Auto wash cash receipts Vacuum cash receipts Total cash receipts Less cash disbursements: Water Electricity Rent Cleaning Insurance Maintenance Total cash disbursements Annual net

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Auto wash cash receipts Vacuum cash receipts Total cash receipts Less cash disbursements: Water Electricity Rent Cleaning Insurance Maintenance Total cash disbursements Annual net cash flow from operations 2-a. Determine the net present value using the net present value method of investment analysis. (Any cash outflows should be indicated by a minus sign. Round the final answers to the nearest whole dollar.) Year(s) Amount of Present Value of Cash Flows Cash Flows Cost of the equipment Now Working capital Now Net annual cash inflows 1-5 Working capital release 5 Salvage value 5 Net present value 2-b. Would you advise Mr. Duncan to open the car wash? Yes No

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