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 has determined the following:

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 has determined the following: a. A building in which an auto wash could be installed is available under a five-year lease at a cost of $1,700 per month. b. Purchase and installation costs of equipment would total $200,000. In five years, the equipment could be sold for about 10% of its original cost. Depreciation in done using the straight-line method over its useful life. c. An investment of an additional $2,000 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 car wash and a vacuum service would be offered with a wash costing $2.00 and a vacuum costing $1.00 per use. e. The only variable costs associated with the operation would be $0.20 per wash for water and $0.10 per use of the vacuum for electricity. f. In addition to rent, monthly costs of operation would be: cleaning, $450; insurance, $75; and maintenance, $500. g. Gross receipts from the car wash would be about $1,350 per week. This would be 675 car washes per week. According to the experience of other car washes, 60% of the customers using the wash would also use the vacuum. There would be 405 vacuum uses (67560%) per week Mr. Duncan will not open the car wash unless it provides at least a 10% return, since this is the amount that could be easily be earned by placing the $200,000 in high-grade securities. 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 disbursement) from its operation. Do not include the cost of the equipment, the working capital, or the salvage value in these computations. Use the template below! The exnected net annual cash receints will be