Exploring opening a self-service care was and operating it for the next 5 years use the following info below: 1. a building in which a car wash could be installed is available under a five year lease at a cost of $5,000 per month. 2. Purchase and installation costs of equipment would total $320,000. In five years the equipment could be sold for about 7% of its original cost 3. An investment of an additional $7,000 would be required to cover working capital needs for cleaning supplies change funds and so forth. After five years this working capital would be released for investment elsewhere. 4. Both a wash and a vacuum service would be offered each customer would pay $1.23 per wash and .62 per vacuum access 5. The only variable cost associated with the operation would be 7.5 cents per wash for water and 10 cents per use of the vacuum for electric 6. In addition to rent monthly cost of operation would be: cleaning $4,800, insurance $75, and maintenance $1,925. 7. Gross receipts from the wash would be about $3,690 per week. According to the experience of other car washes 60% of the customers using the wash would also use the vacuum. 8. The car wash will not open unless it proves at least a 13% return $191,880.00 $58,032.00 $249,912.00 auto wash cash receipts vacuum cash receipts total cash receipts Jess cash disbursements: water electricity rent cleaning insurance maintenance total cash disbursements annual net cash receipts from operations $11,700.00 $9,360.00 $60,000.00 $57,600,00 $900.00 $23,100.00 $162,660.00 $87 252.00 What is the net present value of the investment in the car wash