Q1: A garage is installing a new "bubble- wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that the novelty of this approach will boost sales in the medium term. If the cost of capital is 10%, what is the net present value (NPV) of this project? Year o year 1 Year 2 Year 3 Revenue $340,000 440,000 440,000 Cost of Sales 250,00 220,000 220,000 Gross profit 90,000 220,000 220,000 Selling general, Admin expenses -6400 6400 6400 Depreciation -75,000 75,000 75,000 EBIT 8,600 138,600 138,600 Income tax (35%) -3010 -48,510 -48,510 Incremental earnings 5,590 90,090 90,090 Capital Purchases -280,000 Changes in NWC -5000 -5000 -5000