In five years Kent Duncan will retire . 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 , Mr . Duncan determined the following A buliding in which a car wash could be installed is available under a five year lease at a cost of $3 900 per month b Purchase and Installation costs of equipment would total $240 090 In five years the equipment could be sold for about 79 of its original cost An Investment of an additional $2 090 would be required to cover working capital needs for cleaning supplies change funds , and so forth After five years this working capital would be released for investment elsewhere d . Both a wash and a vacuum service would be offered . Each customer would pay $1 .36 for a wash and $ 65 for access to a vacuum cleane C . The only variable costs associated with the operation would be 75 cents per wash for water and to cents per use of the vacuum for electricity . For In addition to rent monthly costs of operation would be cleaning , $2 490 Insurance , $55 ; and maintenance , $1 825 . 9 . Gross receipts from the wash would be about $2 448 per week According to the experience of other car washes BOSS of the customers using the wash would also use the vacuum Mr . Duncan will not open the car wash unless it provides at least a 696 return . Click her e to view Exhat 138 1 and Exhibit 138 2 to determine the appropriate discount factors using tables Required : Assuming that the car wash will be open 52 weeks a year compute the expected annual not cash receipts from its operation 2 - 8 Determine the net present value using the net present value method of Investment analysis D . Would you advise Mr . Duncan to open the car wash ?Reg 1 Reg 2A Req 2B Assuming that the car wash will be open 52 weeks a year , compute the expected annual net cash receipts from its operation Auto wash cash receipts Vacuum cash receipts Total cash receipts Less cash disbursements Wate Electricity Rent Cleaning Insurance Maintenance Total cash disbursements Annual net cash flow from operationsDetermine the net present value using the net present value method of investment analysis . ( Enter negative amount with a minus sign Round your final answer to the nearest whole dollar amount . ) show less Net present value