Kent Duncan is exploring the possibility of opening a self-service car wash and operating It for the next five years untll he retires. He nas gathered the following information: a. A bullding in which a car wash could be Installed is avallable under a five-year lease at a cost of $3,300 per month. b. Purchase and installation costs of equipment would total $305,000. In five years the equipment could be sold for about 10% of its original cost. c. An Investment of an additional $9,500 would be required to cover working capital needs for cleaning supplies, change funds, and so forth. After five years, this working capltal would be released for Investment elsewhere. d. Both a wash and a vacuum service would be offered. Each customer would pay $1.53 for a wash and $.85 for access to a vacuum cleaner. e. The only varlable costs assoclated with the operation would be 7.5 cents per wash for water and 10 cents per use of the vacuum for electriclty. f. In addition to rent, monthly costs of operation would be: cleaning. \$1,100; Insurance, \$75; and malntenance, \$1,645. g. Gross recelpts from the wash would be about $1,836 per week. According to the experlence of other car washes, 60% 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 12% return. Click here to vew and to determine the approprlate discount factor(s) using tables. Required: I. Assuming that the car wash will be open 52 weeks a year, compute the expected annual net cash recelpts from its operation. 2-a. What is the net present value of the Investment In the car wash? 2-b. Would you advlse Mr. Duncan to open the car wash? Complete this question by entering your answers in the tabs below. Assuming that the car wash will be open 52 weeks a year, compute the expected annual net cash receipts from its operation. Kent Duncan is exploring the possibility of opening a self-service car wash and operating It for the next five years untll he retires. He has gathered the following information: a. A bullding in which a car wash could be Installed is avallable under a five-year lease at a cost of $3,300 per month. b. Purchase and installation costs of equipment would total $305,000. In five years the equipment could be sold for about 10% of its original cost. c. An Investment of an additional \$9,500 would be required to cover working capltal needs for cleaning supplies, change funds, and so forth. After five years, this working capltal would be released for Investment elsewhere. d. Both a wash and a vacuum servlce would be offered. Each customer would pay $1.53 for a wash and $.85 for access to a vacuum cleaner. e. The only varlable costs assoclated with the operation would be 7.5 cents per wash for water and 10 cents per use of the vacuum for electricity. f. In addition to rent, monthly costs of operation would be: cleaning. \$1,100; Insurance, \$75; and malntenance, \$1,645. g. Gross recelpts from the wash would be about $1,836 per week. According to the experlence of other car washes, 60% 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 12% return. Click here to vlew and to determine the approprlate discount factor(s) using tables. Required: 1. Assuming that the car wash will be open 52 weeks a year, compute the expected annual net cash recelpts from Its operation. 2-a. What is the net present value of the Investment in the car wash? 2-b. Would you advlse Mr. Duncan to open the car wash? Complete this question by entering your answers in the tabs below. What is the net present value of the investment in the car wash? (Enter negative amount with a minus sign. Round your final answer to the nearest whole dollar amount.)