Searching for answer to last photo. Present value of intangible benefits.

At a min how much would the additional benefits have to be worth in order for project to be accepted.

Looking for walk thru on how to complete this

PRINTER VERSION BACK NEXT Problem 12-4A Jane's Auto Care is consi the purchase of a new tow truck. The garage the a new truck dering represent a major expenditure. Jane owner of the garage, has the estimates shown below in trying determine whether should purchased. compiled the t Initial cost S59,960 Estimated useful life years Net annual cash flows from towing s7.97o Overhaul costs (end of year 4) $6,000 Salvage value $11,990 Jane's good friend, Rick Ryan, stopped by. He is trying to convince Jane that the tow truck will have other benefits that Jane even considered. Fist, he says, cars that need towing need Thus, when to her facility, her repair will increase. Second, he notes that the tow truck could have a plow mounted on it, thus saving Jane the cost of plowing her parking lot. (Rick will give her a used plow blade for free if Jane will plow Rick's Third, he notes that the truck will generate goodwill; people who are rescued by Jane's tow truck will feel grateful and might be more inclined to use her service station in the future or buy gas there. Fourth, the tow truck will have "Jane's Auto Care" on and back tailgate a form of free advertising wherever the tow truck goes. Rick estimates that, at a minimum, these benefits would be worth the following. Additional annual net cash flows from repair work $3,010 Annual savings from plowing Additional annual net cash flows from customer "goodwill 960 Additional annual net cash flows resulting from free advertising 740 The company's cost of capital is 9%. Your answer is correct. Version 4.22.1.2 ao Pallor I e 2000-20izlohn Wley.A Sans Inc. All Rights Reserved A Division of hahn wileo A sans unc