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HELP THERE IS A TIME LIMIT 3. Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 100000 430000 430000 310000 Cost of Goods
HELP THERE IS A TIME LIMIT
3. Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 100000 430000 430000 310000 Cost of Goods Sold -50000 -215000 -215000 155000 Gross Profit 50000 215000 215000 155000 -6200 -6200 -6200 -6200 Selling, General and Admin Depreciation -77000 -77000 -77000 -77000 EBIT -33200 131800 131800 71800 Income tax (35%) 11620 -46130 -46130 -25130 Incremental Earnings -44820 85670 85670 46670 Capital Purchaes -280,000 Change to NWC -5,000 -5,000 -5,000 -5,000 A garage is installing a new "bubble-wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that the novelty of this approach will boost sales in the medium term. If the cost of capital is 9%, by using the data in the table above, calculate the net present value (NPV) of this project. A. $115,860 B. $127,446 C. -$110,067 D. - $104,274Step by Step Solution
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