PART 1 IS CORRECT, PLEASE JUST HELP ME WITH 2A. DON'T CHANGE THE CALCULATION FOR PART 1.

a. A building, in which a car wash could be installed, is available under an eight-year lease at a cost of b. Purchase and installation costs of equipment would total $350,000. In eight years, the equipment could c. An investment of an additional $8,000 would be required to cover working capital needs for cleaning $3,300 per month be sold for about 10% of its original cost. supplies, change funds, and so forth. After eight 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 $3 and the vacuum e. The only variable costs associated with the operation would be 40 cents per wash for water and 70 f. In addition to rent, monthly costs of operation would be as follows: cleaning, $800; insurance, $200; g. Gross receipts from the car wash would be about $3,750 per week. According to the experience of other costing 40 cents per use cents per use of the vacuum for electricity maintenance, $1,150 car washes, 70% of the customers using the wash would also use the vacuum Kent will not open the car wash unless it provides at least a 10% return, since this is the amount that could be earned by simply placing the $350,000 in high-grade securities Click here to view Exhibit 10-1 and Exhibit 10-2, to determine the appropriate discount factor(s) using tables 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 disbursements) from its operation. (Do not include the cost of the equipment, the working capital, or the salvage value in these computations.) Net annual cash receipts 89,878 2-a. Compute the NPV using the method of investment analysis. (Round discount factor(s) to 3 decimal places. Round other intermediate calculations and final answer to the nearest whole number.) Net present value 2-b. Would you advise Kent to open the car wash? Yes No