Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

This Question: 1 pt 10 CO Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 140000 410000 410000 330000 Cost of Goods Sold

image text in transcribed
image text in transcribed
This Question: 1 pt 10 CO Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 140000 410000 410000 330000 Cost of Goods Sold -70000 -205000 -205000 165000 70000 205000 205000 165000 -6900 -6900 -6900 -6900 -80000 -80000 -80000 -80000 Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings -16900 118100 118100 78100 5915 -41335 -41335 -27335 -22815 76765 76765 50765 O A. - $112,039 OB. $124,488 O c. $136,937 OD. - $118,264 -10000 non EBIT -50000 -60000 -10900 5015 -80000 118100 118100 Income tax (35% Incremental Earnings 78100 -27385 76765 78785 50765 Capital Purches -280.000 Change to wc -5.000 -6,000 -5.000 5,000 A garage is installing a new bubble-way 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 ales in the medium tom. It the cost of capital is 10%, by using the data in the table above calculate the not present Value (NPV) of this project OA - $112.009 OB. $124.488 OC. $135,937 OD-5118.254

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Promoting Microfinance Challenges And Innovations In Developing Countries And Countries In Transition

Authors: R. Manos , J. Gueyie, J. Yaron

1st Edition

1137034904, 1137034912, 9781137034908, 9781137034915

More Books

Students also viewed these Finance questions