Hello, can someone please help me. I'm new to accounting and i'm having lots of trouble with this question. i would really appreciate your help
Problem 10 - 2 Performing an NPV Analysis ( LO2 - CC 8 ) In eight years , Kent Duncan will retire . He has $340, 000 to invest , and he is exploring the possibility of Opening a self-service car wash . The car wash could be managed in the free time he has available from his regular occupation , and it could be closed easily when he retires . After careful study , Kent has determined the following ! a. A building , in which a car wash could be installed , is available under an eight- year lease at a cost of $3, 200 per month . 6. Purchase and installation costs of equipment would total $340, 000 . In eight years , the Equipment could be sold for about 10% of its original cast . C. An investment of an additional $7,and would be required to cover working capital needs for cleaning supplies , change funds , and so forth . After eight years , this working capital would be released for investment elsewhere . d. Both a car wash and a vacuum service would be offered , with a wash costing $3 and the Vacuum costing 30 cents PER USE . E. . The only variable costs associated with the operation would be $8 cents per wash for water and GUY cents per usE of the vacuum for Electricity . F . In addition to rent , monthly costs of operation would be as follows : cleaning , $780 ; insurance , $190 ; maintenance , $1 . 120 . 9 .` Gross receipts from the car wash would be about $3, 600 per week . According to the experience of other car washes , TOY's of the customers using the wash would also use the Vacuum . 17 . Kent will not open the car wash unless it provides at least a 10% return , since this is the amount that could be earned by simply placing the $340, 000 in high-grade securities .EXHIBIT 10 - 1 Present Value of 51 ( 1 + + ) " C` 0.453 0.413 0.420 0.409 0.093\\ \\0.077 0.062 2.017 6.013 0.020 0.000 0.79+\\ 0.71+ 0.435\\ 0.090 0.057\\ 0.020 0.797\\ D.JOS DIA] DJIS 0.09 + 0.072\\ 0.050\\ $ 0.030\\ 0.010 0.597\\ 0510 0.20 4\\ O.JSI Q.JIZ DOTS Q.5HI D 2_0Q4 0.579 0.951 { 0.57 +| 0.50D\\ 0. 477\\ 0.30+ 0.023\\ 2 .735\\ 0.030 0.593\\ 2 0.357\\ 0.510 1:451/ 0. 473 0.397\\ 0.373 0.350 \\0.20 0 2.7 + 7\\ 0.021/ \\0.519 0. 4 76 0- 137 { 0.370 0.3+1\\ 0.315\\ 0.291 0.104\\ 0.106 3. 790 0.030 0.50+ 0.507 { 2.150 0.4 10 0.270 0.035 0.303\\ \\0.275\\ 0.250 } 0.707 0.123 DIED BILL DOES 0.503 0.513 0. 453 0.100 0.35 + 0.31 + 6.279 0.319 0.237 0. 195 0.175 0.159 0.095 0. 731 0.077 0.037\\ 0.351 0.305 0.200 0.273 0.20+ 2.179 0.157 2.139 2.123\\ CODE 0.500 0. 1 2 + 0.301 0.305 0.203 0.235 6. 19+ 0. 107 0.1 1 1 0.135 0.105 0.09 + 10 D.OTO 0.01+ 0.550 0.300 0.727\\ 0.270 0.237 2. 191 2. 10 3 0.137 2.1 10 0.049\\ 0.075 11 0.050 0.505 0.537\\ 0.429 0.350 0.207\\ \\0.237 0. 195 0. 16 2 2.135 0.112 0.04 + 0.079\\ \\0.050 0.025 17 1.525\\ 0.357 0.197\\ 2.397\\ 0.314 0.257\\ 0.200 0.160 0 . 137 2.11: 0.097\\ O.OTO 0.00 ?` 0.057\\ 13 0.0^1\\ 0.530 0.76.9\\ 0.290 0.279\\ 0. DEI\\ 0.050 0.033\\ 0.013 It 2.577 0.034\\ 0.004 0.955 0. 4 01 21. 4 17\\ 0.051\\ 0.031 Q.DZ5 51 0.3IS 0.239 2.103 0.1 0 0 . 109 0 10 0.750 0.39+ 0.797 1) 0.210 0.103 2.123 0.093 0 0.05 + 1.0 4 2 0.037\\ 0 .025\\ 0.014\\ 0.005 17 0.513 0. 730 0.371\\ 0.370\\ 0 .195 0.1 + 5\\ `0 . 1.05\\ 0.03 + 0.020 0.012 0.003 IE OF10 0.350 0.250 DIED 2.130 0.095 0.069 1 \\2_051\\ 2.030 0:020 0.021\\ Q.DID I) 0.074 0.007 14 D. AT5 0.340 0.331 0.237 0.16 + 2.1 16 0.063 0.060 2.013 2.031 0.023 0 . 017 0.017 0.0 09\\ 20 0.150 0.377 0.312 0.215 0.1 19 2.10+ Q.OTZ Q.OSI LOST 2.0ZO 2.014 0.01 + 0.010\\ 0.001 21 21. 439 0.359 0.29 + 0.199 0.135 0.093\\ 0.031 0.027\\ 2.015 0.011 0 0.0.03\\ 0.001 10.3 1 2 0.270 0.10+ 0.123 0.003\\ 0.050 0.030 0.020 2.0IS 0.013\\ 0.001 0.320 0.202 0.170 0.11: 0.07 +| 0.0 + 9 0.033\\ \\Q.DIS 0.010 0.0 07\\ 0.0 05\\ 2+ 0.390 \\\\0.310 0.7+ 7 0.150 0.10: 1.0 0 0 \\0.043\\ 10.020 25 0.375\\ $ 2.295 0.173 2. 1 1 0 1.097\\ 0.059\\ \\0.030 0.07 +| D_DIG Q.OID Q.0 07\\ 0.0:03\\ 20 0.301 0.201\\ 0.230 0 .135\\ 0.053 0.033\\ 0.021 0.01 +\\ 0.0 00 27 21.3 1 7\\ 0.160 0.207\\ 0 .125 1) ` 0.0 + 7\\ 0.029\\ 0.010\\ Q.0 05 0.0^3\\ 2. 0^]1 0.373\\ 0.255 0.196 2.1 10 1.069 { 0.026\\ 0.0`1 0.321\\ 0.47 3 0.105 0. 107 0.063 { Q.OH + 0.OOO OOOS 0.0 03 0.017 0.0^1\\ DE 0. 231 1 0 . 17 + 0.049\\ 0.057\\ 0.073\\ 0.017 1) 0 .0`1 \\ LOTO 0.205 0.1 + 2 0.097 0.010 0.OZZ D.DIL ODDS Q.DO3 0.071 0.001EXHIBIT 10 - 2 Present Value at an Annuity at $1 * = " ( 1 + + ) * The` ^it` 1913 LEGO 0.976\\ 0.077 0.007 1.2}} 1.730 1.23 4 2.723 2.17+ 2.105 20 4 7 1. 50% 1.509 2.170 3.097\\ 2.91 + 2.790` 2.690 2:30 1. 079 3. 791 3.605 3, + 33 3.37 + 3.127\\ 7. 7+5 7.035 2.035 1. 523 1 155\\ $111 2009 3.605 2.030 2015 2759 2613 2.160 $ 50+ + 105 + 030 3.012 3.605 3+ 16 3.14 7\\ 7:437\\ 7.26.3 2:425\\ 1. 435 3.759 $940 + 507 3. 750 3.30 0 2. 1 1+ 3.019\\ 2.379 6TIC 5.650 5216 + 123 +. 19+| + .192\\ 3.923 2. 75 5\\ 2.369\\ 2.09] 2. 41+ I.OUT 1035 1. 7TO 2.130 \\6:194 5.060 5.197\\ + . 793 2.051 2.506\\ 2.107 2 3:41 1.017 3.197 2.405 10.50 2 14.0:47 7.207 6:020 $.002 5. to^ 2.095 2.219\\ 2.17 7 1 1. 110 10:340 3. 1031 3:360 11.052 10.027 |1. 1010 2.051 6:47+ 6205 5.069 5.103\\ + 730 +357\\ +132 2.751 2.503 3.203 2. 409 12. 1 6 6 11-17 4 10.$ 17 0.145\\ 7.120 6373 3.740 $391 2.771 3.510 12. 659 11.050 7250 6 to7 5010 5:273 4 1013 + +19 +050 2.706\\ 3579\\ 7, 19 4 12:025 11.150 7.3^ +.0197\\ 2.789 3.530 2.196 13.590 12 +52 11. 470 9.61.5 7. 109 6073 5.979\\ 2.545 3210 7, 197 11.75+ 10.017 7.50% 5.607 5.573\\ +.091 + +TE + 121 1.010 3.551 3120 2. 450 1 + +51/ 13. 10.3 12.04 2\\ 10. 301 Q. TTI THIS 6.743 6011 5.410 +909 + 120 3.517\\ 3.5.50 3. 373 2, 195 HOST 12_+09 12:303 10.371 3.172 2.559\\ 2715 13.2+7 13.795 12. 5 50 10.319 +143\\ 3.531 3 327 2. 155 12.703 10LOTS 9:07 7 THE 6073 6.097\\ 13.403 14375 13.013 10.BID 4. 1 6: 1 6:406 5.115\\ +131\\ 3.537\\ 3.50^` 3. 3.301\\ 2.50.0 13.211 10.975 4.237 6:435 6.120 5:492\\ +525\\ +15+ 2.079\\ 2.507 2371 2.50 0 14095 11 .031 3.307 1970 3.560 15.1 1 1 13.591 + 975 +531 +159 10+1\\ 3212 2.50^ LIFE LEE LI 13.103 9.137 1003 6. 197\\ 19. 793 17.159 15.040 9. 779 7.105 027 + 5.540 + 105 2010 2.50 0Click here to view Exhibit 10 - 1 and Exhibit 10 - 2, to determine the appropriate discount factor ('s ) Using tables . Required :" 1 . Assuming that the car wash will be open 52 weeks a year , compute the expected net annual cash receipts ( gross cash receipts less cash disbursements ; from its operation . I Do not include the cost of the Equipment , the working capital , or the salvage Value in these computations . \\ Not annual cash receipts 2 - a . Compute the NPY' using the method of investment analysis . ( Round discount factor ( s ) to 3 decimal places . Round other intermediate calculations and final answer to the nearest whole number .! Net present valueClick here to view Exhibit 10 - 1 and Exhibit 10 - 2, to determine the appropriate discount factor 's ) Using tables