Question: Florida Car Wash is considering a new project whose data are shown below. The equipment to be the last J-year to life, would be deprccted
Florida Car Wash is considering a new project whose data are shown below. The equipment to be the last J-year to life, would be deprccted on glut-line buis over the project's year life, and would have mero salvage value ofter Year 3. No change in net operating working capital would be required. Revenues and other operating costs will be constant over the project's life, and this is just one of the firm's my projects, so my losses ont can be used to offset profits in other units. If the number of cars washed declined by 104 from the expected level by how much would the project' NPV dange? (Hint: Note that ens flow are constant at the Year 1 level, whatever that level is.) Do not round the intermediate calculation and round the final swer to the nearest whole number WACC Net investment cout (depreciable basis) Number of washed 10.09 560.000 Average price per car Fixed op. cout (excl. depr) Variable op, count (e. V per car washed) Annual depreciation 2.960 $35.00 S10,000 55 375 $20,000 35.0% Tax rate 3.-537,560 b-538,687 O C.337.184 2-536,433 O-539,814
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