Kent Duncan is exploring the possibility of opening a self-service car wash and operating it for the next five years until he retires. He has gathered the following information: a. A building in which a car wash could be installed is avallable under a five-year lease at a cost of $5,900 per month. b. Purchase and installation costs of equipment would total $320,000. In five years the equipment could be sold for about 9% of its original cost. , c. An investment of an additional $9,000 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 wash and a vacuum service would be offered. Each customer would pay $112 for a wash and $070 for, access to a vacuum cleaner. e. The only variable costs associated 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, $1,400, insurance, $75; and maintenance, $1,895. 9. Gross receipts from the wash would be about $3,024 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 13% return. Click here to view Exhibit 1284 and Exhibit 1282. to determine the oppropriate discount foctor(s) using tables. \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline ieds & 4% & 5% & 6% & 7% & 8% & 9% & 10% & 11% & 12% & 13% & 14% & 15% & 16% & 17% & 18% & 19% & 20% & 21% & 22% & 23% & 24% & 259 \\ \hline 1 & 0962 & 0952 & 43 & 0935 & 0926 & 0917 & 0909 & 0901 & \begin{tabular}{|l|} 0893 \\ \end{tabular} & 0.885 & 0.877 & 0.870 & 0862 & 0.855 & 0847 & 0.840 & 0.833 & 0826 & 0.820 & 0.813 & 0806 & 0800 \\ \hline 2 & 0925 & 0907 & 0.890 & 0.873 & \begin{tabular}{|l|l|} 0857 \\ \end{tabular} & 0842 & 0826 & 0812 & 0797 & 0783 & 0.769 & 0.756 & 0.743 & 0731 & 0718 & 0706 & 0694 & 0.68 & 1672 & 0661 & 0650 & 0.640 \\ \hline 3 & 0889 & 0864 & 0840 & 0.816 & 0.794 & 0.772 & 0731 & 731 & 0712 & 0693 & 0.673 & 0658 & 0641 & & & & 0579 & 05 & 0.551 & \begin{tabular}{ll} 0537 & \\ \end{tabular} & 0.524 & 0512 \\ \hline 4 & 555 & 0.823 & 0.792 & 0.763 & 0.735 & 0708 & 0683 & 659 & 0.636 & 3 & 0.59 & 572 & 0552 & 34 & 0316 & & 0.482 & & & 0437 & 0423 & 0410 \\ \hline 5 & 0822 & 0.784 & 0747 & 0.713 & 0.681 & 0.650 & 621 & & . & 0543 & & 0.497 & 0.476 & & & 0419 & 0.402 & 0386 & 370 & \begin{tabular}{|l|} 0355 \\ \end{tabular} & 0341 & 0328 \\ \hline & 0.790 & 0.746 & 0705 & 0666 & 0.630 & 0.596 & 0564 & 05 & 00 & 0.48 & 0456 & 0432 & 0.410 & 039 & 03 & 0352 & 0335 & 0319 & 0303 & \begin{tabular}{l|} 0289 \\ \end{tabular} & 0.275 & 0.262 \\ \hline & 0.760 & 0711 & 0065 & 0.623 & 0.583 & 0547 & \begin{tabular}{l} 0.513 \\ \end{tabular} & 0482 & & & 0.400 & 0.37 & 03 & & & & & & 0249 & \begin{tabular}{|l|} 0235 \\ \end{tabular} & 0.23 & 0210 \\ \hline 8 & 0731 & 0.677 & 0.627 & 0582 & 0540 & 0502 & 0.467 & 0434 & 0404 & 0376 & & 0327 & 0305 & & & & 0.233 & & & 191 & & 0.168 \\ \hline 9 & & 645 & & 0.54 & 050 & 0460 & & & & & 0303 & 0284 & 0263 & 0243 & 0225 & 0200 & 0194 & 0180 & 0167 & 0155 & 0.144 & 0.134 \\ \hline & 0 & 0.614 & 0.3 & 0205 & 0.4 & 0422 & 0386 & & & & & 02 & & & & 01 & 0162 & & 01 & 0126 & 0.116 & 0107 \\ \hline II & 0650 & 0588 & 0327 & 0.475 & 0429 & 0388 & 0350 & 03 & & & & 021 & & & & & & & & 103 & 0.094 & 0 \\ \hline & 0.625 & 0.557 & 0497 & 0444 & 0397 & 0356 & 0319 & 0286 & 0.257 & 0231 & 208 & 187 & 0168 & 0 & 0 & 0124 & 0112 & & & \begin{tabular}{|l|l|} 0.083 \\ \end{tabular} & 0076 & 069 \\ \hline 13 & & & & 0415 & & & & & & & 0182 & 163 & 0.145 & 013 & 011 & 0104 & 2093 & 008 & 0.075 & 0068 & 0061 & 0055 \\ \hline 14 & 0.57 & 0505 & 0442 & 0358 & 0.340 & 0.299 & 0.263 & 0.232 & 0205 & 0181 & 0160 & 0141 & & & & & & & 006 & 0.055 & 0049 & 2044 \\ \hline 15 & 0555 & 0481 & 0417 & 0362 & 0.315 & 0.275 & 0.239 & 02 & 0183 & 0 & 0 & 0123 & & & & & 0.065 & & 0.031 & 0.045 & 2040 & 035 \\ \hline & 0534 & 0458 & & 0339 & & 232 & 0218 & & & 0 & 0121 & 0.107 & 0023 & & & 0062 & 1054 & & 0.042 & 0.036 & 0.032 & 0028 \\ \hline 17 & 0513 & 0436 & & 031 & & & & & & & & & & & & & & & & 030 & 0.026 & 0023 \\ \hline 18 & 0494 & 0416 & 030 & 0296 & 0.250 & 0212 & 0180 & 01 & 0130 & 0111 & 0003 & 00 & 00 & & & & & & & & & 0.018 \\ \hline & +8 & 0396 & 03 & 0277 & 0232 & 0194 & 016 & 0 & 0116 & & 0063 & 0.070 & = & & & 0037 & 00 & & 023 & 0020 & 017 & 0.14 \\ \hline 20 & & & & 102 & & 0.18 & & & & & & & & & & & & & & 0016 & 0014 & 001 \\ \hline 21 & 0439 & 0339 & 0.29 & 0242 & 019 & 116 & 01 & & & & & & & & & & & & & & & \\ \hline 22 & 0422 & 0342 & 0.2 & 0226 & 0 & 0150 & 0.12 & & 0 & & & & & & & & & & & & 0009 & 007 \\ \hline & 0406 & 0326 & 02 & 021 & & 013 & & & & & 000 & 004 & & & & 0018 & & & & 0000 & 0007 & 0006 \\ \hline 24 & 0390 & 0310 & 0.24 & 019 & 01 & 01 & 01 & & & & & & & & & & & & & 0.007 & 06 & \\ \hline 25 & 0375 & 029 & 0? & 0184 & 0146 & 0116 & 0002 & 00 & 00 & & & & & & & & & & & 0006 & 0005 & 0004 \\ \hline & 036 & 028 & & 017 & 0113 & 0.166 & 008 & 00 & & & & & & & & 001 & & & 6 & 000 & & \\ \hline 27 & & 0.268 & 020 & 016 & 01 & 00 & & & & & & & & & & & & & & 04 & & \\ \hline 28 & 0333 & 023 & 0196 & 0150 & 01 & 0000 & 00 & 003 & 00 & 00 & & & & & & & 0006 & 0 & 0004 & 0003 & 0,002 & 0002 \\ \hline 29 & 032 & 0243 & 01 & 0.14! & 01 & 0082 & 0063 & 0.01 & 00 & 00 & & & & & & & & & 0,003 & 02 & & 0002 \\ \hline 30 & 0305 & 0231 & 017 & 0131 & 0 & 00 & 00 & 00 & 00 & & & & 00 & & & 00 & & & 0 & & 0 & \\ \hline 40 & 0.208 & 0.142 & 0097 & 0067 & 0046 & 0.032 & 0027 & 0.015 & & 100 & & & & & & & & an & 0000 & 1000 & 0.000 & 0.000 \\ \hline \end{tabular} \begin{tabular}{|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|c|} \hline & 4% & 5% & 6% & 7% & 5% & 9% & 10\% & 1% & 12% & 13% & 14% & 15% & 16% & 17% & 18% & 19% & & & 36 & & 24% & \\ \hline 1 & 0.962 & & 0943 & 93 & 926 & 917 & 0909 & & 0.893 & 0.885 & 0.877 & & & & & 0840 & 0.833 & 0826 & 0.820 & 0.813 & 0.806 & CO0 \\ \hline 2 & 1886 & 559 & 833 & 808 & 83 & 159 & 736 & 13 & 690 & 668 & 1647 & 1.6 & & & & 15 & & 02 & 1.492 & 1.474 & 1457 & \\ \hline 3 & & 2723 & 87 & & & & & & m. & 361 & & & 22 & & & 21 & & & & & & \\ \hline 4 & 3.630 & 3.546 & 3465 & = & 312 & 3240 & 31 & & 37 & & & & & & & & & & & & & \\ \hline & 33 & 329 & & & & & & & 505 & & & & & & & & & & & & & \\ \hline 6 & . & 076 & & & 37 & 486 & & & i11 & & & & & & & & & & & & & \\ \hline & 00 & 786 & & & & & & & & & & & & 922 & 39 & & & & & & & \\ \hline & 6. & 46 & & & & & & & & 7 & & & & & & & & & & 3518 & & 132 \\ \hline 9 & 135 & 7 & & & & & & & & & & & & & & & & & & & & \\ \hline 10 & & & & & & 118 & & & & 426 & & & & & & & & & & & & \\ \hline II & & & & & & & & & & & & & & & & & & & & 19 & & 365 \\ \hline 12 & 9383 & & & 94 & & 16 & & & & 9 & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline 15 & 1118 & 10.38 & & 9108 & & & & & & & & & & & & & & & & & & \\ \hline 16 & & & & & & & & & & & & & & & & & & & & II & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline is & & & & & & & & & & & & & & & & & & & & & & \\ \hline 19 & & & & & & & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline 21 & & & & & & & & & & & & & & & & & & & & & & \\ \hline 22 & & & & & & & & & & & & & & & & & & & & & & \\ \hline 23 & & & & & & & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline2524 & .622 & 14091409 & 12.783 & & & 9 & & & & & & & & & & & & & & & & \\ \hline 26 & & & & & & & & & & & & & & & & & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline 28 & & 14.8 & 13.406 & & & & & & & & & & & & & & & & & & & \\ \hline & & 1. & 15591 & 12278 & 158 & 1019 & 93 & & 8 & 74 & 69 & 65 & & & 5510 & 52 & & & & & & \\ \hline & & & & & & & & & & & & & & & & & & & & & & \\ \hline & 1979 & 11 & 0+6 & 13 & & & & & & & & & & & 534 & 32 & 4997 & 4.760 & 4.54 & 4.347 & 4166 & 9 \\ \hline \end{tabular} 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 - 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. 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.)