Calculate the after tax net cash flows if they sold today . Write a paragraph to identify
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Question:
. Write a paragraph to identify and discuss the Cristos
a
b
Part
Revenue:
Average revenue per car wash $1 4 . 0 0
Forecasted annual volume growth in carwashes3 percent
Expenses:
Current variable costs per carwash
Utilities( Elec/ gas/ water) $0 . 8 8
Detergents/ chemicals0 . 6 4
Maintenance costs0 . 4 7
Site labor1 . 3 4
Total Variable Costs $3 . 3 3
Fixed costs per carwash( Based on3 7 , 5 0 0 carwashes)
Salaries $5 . 6 0
Insurance0 . 4 0
Operating costs0 . 8 4
Advertising0 . 6 2
Depreciation( current) 0 . 0 0 * *
Total Fixed Costs7 . 4 6
Total $1 0 . 7 9
Investment/ Tax Information
Interest Rate8 . 0 0 %
Equipment Investment $2 5 0 , 0 0 0
Net book value if sold today $4 0 , 0 0 0
Net book value if sold in1 0 years $8 5 , 0 0 0
Useful Life( Years) 1 0
Salvage Value $0
Maintenance Cost Decrease Per Car Wash $0 . 2 5
Long Term Capital Gains Tax Rate1 5 . 0 0 %
Corporate Income Tax Rate2 1 . 0 0 %
Case questions
Part1 :
Related Book For
Financial accounting
ISBN: 978-0136108863
8th Edition
Authors: Walter T. Harrison, Charles T. Horngren, William Bill Thomas
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