im Epson operates a full-service car wash, which operates from 8 A.M. to 8 P.M. seven days a week. The car wash has two stations: an automatic washing and drying station that can handle 30 cars per hour and an interior cleaning station that can handle

210210

cars per day. Based on a recent year-end review of operations, Kim estimates that future demand for the interior cleaning station for the seven days of the week, expressed in the average number of cars per day, would be as follows:

LOADING...

Day	Mon.	Tues.	Wed.	Thurs.	Fri.	Sat.	Sun.
Cars	160	180	150	140	270	300	270

By installing additional equipment (at a cost of $100,000)

Kim can increase the capacity of the interior cleaning to 300 cars per day. Each car wash generates a pretax contribution of

$ 4.00

Should Kim install the additional equipment if she expects a pretax payback period of three years or less?Part 2Kim

should

should not

install the additional equipment because the payback period is

enter your response here

years.

(Enter

your response rounded to two decimal

places.)