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Car Wash Firm Inputs: Equipment has a 3-year tax life (depreciated on a straight-line basis over the project's 3-year life). Assume 0 salvage value. No

Car Wash Firm Inputs:

Equipment has a 3-year tax life (depreciated on a straight-line basis over the project's 3-year life). Assume 0 salvage value.

No change in Net Operating Working Capital (NOWC)

Revenues & Other Operating Costs will be constant

Assume a decline of 40% from the expected level of the number of cars washed

WACC 10%
Net Investment Cost (Depreciable Basis) $60,000
# Cars Washed 2,800
Average price per car $25
Fixed operating costs (excluding depreciation) $10,000
Variable operating cost/unit (i.e., VC per car washed) $5.375
Annual depreciation $20,000
Tax rate 35%

Calculate by how much would the project's NPV change. (Please express your answer in the nearest whole number i.e., 123,456)

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