Requirement 4: (20 marks) CLO 2

Assist Kent Duncan, the Product Development Manager at Bright (USA) Inc. on the following:

Assuming the car wash will be open 52 weeks a year, show Kent the expected annual net 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.)

Show Kent the net present value of the investment in the car wash.

Advise him whether or not to open the car wash. Round all dollar figures to the nearest whole dollar.

Requirement 5: (8 marks) CLO 4

Regarding Opera Food & Beverage Company in Sydney, address the issue of fixed administrative expenses of $18,800,000 by;

Showing the allocation of the fixed administrative expenses among the three restaurants for this year using sales dollars as an allocation base.

Calculating the change in each restaurant's allocated cost from last year to this year.

Commenting on the usefulness of sales dollars as an allocation base.

Explaining the possible reasons why the manager of Malabar Garden is unhappy with the amount

charged to Malabar Garden Restaurant this year.