Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the next ve years until he retires. He has gathered the following information: a. A building in which a car wash could be installed is available under a ve-year lease at a cost of $4,000 per month. b. Purchase and installation costs of equipment would total $300,000. In ve years the equipment could be sold for about 10% of its original cost. c. An investment of an additional $1,000 would be required to cover working capital needs for cleaning suppliesr change fundsr and so forth. After ve 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 $1.3? for a wash and $.85 for access to a vacuum cleaner. e. The only variable costs associated with the operation would be 15 cents per wash for water and 10 cents per use ofthe vacuum for electricity. f. In addition to rent. monthly costs of operation would be: cleaning. $2,500; insurance. $15; and maintenance, $1,835. g. Gross receipts from the wash would be about $2,603 per week. According to the experience 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 10% return. Click here to view Exhibit 1413-1 and Exhibit 143-2, to determine the appropriate discount factorljs} using tables. Required: 1. Assuming that the car wash will be open 52 weeks a year. compute the expected annual net cash receipts from its operation. 2-a. What is the net present value of the investment in the car wash? 2-b. Would you advise Mr. Duncan to open the car wash? Complete this question by entering your answers in the tabs below. Reg 1 Req 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: Water Electricity Rent Cleaning Insurance Maintenance Total cash disbursements Annual net cash receipts from operations Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 2B 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.) Net present value Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Would you advise Mr. Duncan to open the car wash? OYes ONo