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Question 24 Not yet answered (Ignore income taxes in this problem) Lichty Car Wash has some equipment that needs to be rebuilt or replaced. The
Question 24 Not yet answered (Ignore income taxes in this problem) Lichty Car Wash has some equipment that needs to be rebuilt or replaced. The following information has been gathered concerning this decision Points out of 1.00 hela question Present Equipment $47.000 $20.000 $20.00 New Equipment $48.000 Purchase cest new Remaining book value Cost to rebuild now... Major maintenance at the end of 3 years Annual cash operating costs Salvage value in years... Salvage value now $9.000 $6,000 Lichty uses the total cost approach and a discount rate of 10% in making capital budgeting decisions. Regardless of which option is chosen, rebuild or replace at the end of five years Mr. Lichty plans to close the car wash and retire. if the new equipment is purchased, the present value of all cash flows that occur now is Select one: O a $(45,000) O b. (39,000) O c.5(37,000) O d. $(34,000)
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