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Collins Car Wash is considering a new project with projected data shown below. The equipment to be used would be depreciated on a straight-line basis
Collins Car Wash is considering a new project with projected data shown below. The equipment to be used would be depreciated on a straight-line basis over the project's 4-year life and would have zero salvage value after Year 4. No new working capital would be required. Revenues and operating costs will be constant over the project's life, and this is just one of the firm's many projects so any losses on it can be used to offset profits in other units. If the number of cars washed declined by 7% from the expected level, by how much would the project's NPV decline? (Hint: Note that cash flows will be constant at the Year 1 level, whatever that level is). Please present your answer in \$ thousands, rounded to one decimal place, e.g., - 54.3 . Incorrect The answer is 658.51%
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