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Year 0 Year 1 Year 2 450000 Revenue 130000 -65000 Year 3 450000 -225000 225000 Cost of Goods Sold -225000 Year 4 330000 165000 165000

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Year 0 Year 1 Year 2 450000 Revenue 130000 -65000 Year 3 450000 -225000 225000 Cost of Goods Sold -225000 Year 4 330000 165000 165000 -6000 -76000 65000 -6000 -76000 225000 -6000 -6000 -76000 Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings -76000 143000 -17000 143000 83000 5950 -50050 -50050 -29050 -22950 92950 92950 53950 Capital Purchaes -280,000 Change to NWC -5,000 -5,000 -5,000 -5,000 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 9%, by using the data in the table above, calculate the net present value (NPV) of this project. A. -$134,631 OB. $149,590 OC. - $142,111 OD. $164,549

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