A garage is installing a new bubble-wash car wash. It will promote the car wash as...
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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 8%, by using the data in the table calculate the net present value (NPV) of this project. Revenue Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings Capital Purchaes Change to NWC Year 0 -280,000 Year 1 120000 -60000 60000 -6500 -79000 -25500 8925 -34425 -5,000 Year 2 440000 -220000 220000 -6500 -79000 134500 -47075 87425 -5,000 Year 3 440000 -220000 220000 -6500 -79000 134500 -47075 87425 -5,000 Year 4 330000 165000 165000 -6500 -79000 79500 -27825 51675 -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 8%, by using the data in the table calculate the net present value (NPV) of this project. Revenue Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings Capital Purchaes Change to NWC Year 0 -280,000 Year 1 120000 -60000 60000 -6500 -79000 -25500 8925 -34425 -5,000 Year 2 440000 -220000 220000 -6500 -79000 134500 -47075 87425 -5,000 Year 3 440000 -220000 220000 -6500 -79000 134500 -47075 87425 -5,000 Year 4 330000 165000 165000 -6500 -79000 79500 -27825 51675 -5,000
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Related Book For
Auditing The Art And Science Of Assurance Engagements
ISBN: 9780136692089
15th Canadian Edition
Authors: Alvin A. Arens, Randal J. Elder, Mark S. Beasley, Chris E. Hogan, Joanne C. Jones
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