Case questions

What do you consider the Christians' key issue$($s$)?$

Compute the breakeven carwashes $($carwashes & total sales dollars$),$ margin of safety and degree of operating leverage. Assess Kay's comments about the current state Crossroads' profitability.

Assuming the Christians decide to upgrade their equipment, calculate Crossroads net operating income for each of the next ten years. Evaluate the long term viability of Crossroads.

Perform a discounted cash flow analysis and clearly recommend if the Christians should accept Mega's offer or continue to operate Crossroads.

Assess the impact of your recommendation on Ron and Kay's family, employees and the community with a focus on qualitative $($non$-$financial$)$ factors. Please use the attached

Excel template to answer the questions if applicable, entering your formula in Excel to get the results.