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 building in which a car wash could be installed is available under a five year lease at a cost of $3,100 per month b Purchase and installation costs of equipment would total $193.000 in five years the equipment could be sold for about 10% of its original cost c. An investment of an additional $5,000 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 5151 for a wash and $75 for access to a vacuum cleaner e. The only variable costs associated with the operation would be 75 cents per wash for water and 10 cents per use of the vacuum for electricity In addition to rent, monthly costs of operation would be cleaning S1600, Insurance, 575, and maintenance, 51735 Gross receipts from the wash would be about $1,812 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 7% return Click here to view Exo.149.3 and EX 140.2. to determine the appropriate discount factors) 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- What is the net present value of the investment in the car wash? 2.b. Would you advise Mt Duncan to open the car wash? Complete this question by entering your answers in the tabs below. Reg1 Reg 2A Reg 20 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