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Florida Car Wash is considering a new project whose data are shown below. The equipment to be used has a 3 - year tax life.
Florida Car Wash is considering a new project whose data are shown below. The equipment to be used has a year tax life. Under the new tax law, the equipment is eligible for bonus depreciation, so it will be fully depreciated at At the end of the project's year life, it would have zero salvage value. No change in net operating working capital NOWC would be required for the project. 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 from the expected level, by how much would the project's NPV change? Hint: Note that cash flows are constant at the Year level, whatever that level is Do not round the intermediate calculations and round the final answer to the nearest whole number.
WACC
Equipment cost
Number of cars washed
Average price per car
Fixed op cost
$
Variable op costunit ie VC per car washed
$
Tax rate
$
$
a$
b$
c$
d$
e$
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