Calculate the net present value of after-tax cash flows if the Christians upgrade their equipment and sell after 10 years. Calculate the after-tax net cash flows if they sold today.

Balance Sheet Current Year 10 Cash $310,000 $1,648,007 Land 30,000 30,000 Building 65,000 65,000 Accumulated Depreciation- Building (65,000) (65,000) Equipment (Current) 500,000 750,000 Accumulated Depreciation- Equipment (500,000) (750,000) Total Assets $340.000 $1, 678,007 Current Liabilities $0 $0 Common Stock (Current) 75,000 75,000 Retained Earnings (Current) 265,000 1,603,007 Total Liabilities & Equity $340,000 $1, 678,007 * *Except cash no changes in working are expected.Forecast and Financial Data Group 2 Forecast Next 10 Years Current Car Washes (Year 0) 39,250 Annual Growth Car Washes 2.00% Current Revenue Per Car Wash $13.50 Annual Price Increase 0.00% Annual Variable Expense Growth 0.00% Variable Costs (Current) Utilities (Elec/Gas/Water) $0.78 Detergents/Chemicals 0.64 Maintenance Costs 0.47 Site Labor 1.24 Total Variable Costs $3.13 Fixed Costs (Current) Owners' Salary (Combined) $1.91 Daughter's Salary 1.72 Son's Salary 1.72 Insurance 0.42 Operating Costs 0.57 Advertising 0.62 Depreciation Total Fixed Costs $6.96 Total Cost Per Car Wash $10.09Discounted Cash Flow if Continue to Operate Year 1 2 3 4 5 6 8 9 10 Cash Inflows (Sales) After-Tax Cash Received on Sale of Business Net Cash Inflows Operating Expenses Less Depreciation (Non-cash expense) Income Tax Expense Net Cash Outflows Net Cash Flows Discount Factors (Present Value of $1.00) Present Value of Net Cash Flows Less: Equipment Investment Discount Rate Net Present Value if Upgraded and Sold in 10 YearsInvestment! Tax Information Interest Rate Equipment Investment Useful Life (Years) Salvage 1Value Maintenance Cost Decrease Per Car 'Wash Mega's Offer (Current) Aer Tax Gain on Safe (Current) Projected Sale Price in 10 Years Aer Tax Gain on Safe (Aer 10 Years) Long Term Capital Gains Tax Rate Corporate Income Tax Rate 100% 95250000 10 $0 $0.30 $ LETSDOO $1.4?6.000 13215001000 $1.9?6.000 20.00% 21.00%