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I need solution Check my work Metro Car Washes, Inc. is reviewing an investment proposal. The initial cost as well as the estimate of the
I need solution
Check my work Metro Car Washes, Inc. is reviewing an investment proposal. The initial cost as well as the estimate of the book value of the investment at the end of each year, the net after-tax cash flows for each year, and the net income for each year are presented in the following schedule. The salvage value of the investment at the end of each year is equal to its book value. There would be no salvage value at the end of the investments life. Initial cost and Book Value Annual Net After-Tax Cash Flows Annual Net Income Year 5105, 000 78, 808 42, 800 45, 000 40, 000 35, 800 30,000 $15, eee 17,000 19, 800 21, 088 23,000 7,000 Management uses a 16 percent after-tax target rate of return for new investment proposals. Use ARpendix A for your reference. (Use appropriate factor(s) from the tables provided.) 3. Compute the proposal's net present value. Net present valStep by Step Solution
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