Question: Jones Car Wash is considering a new project whose data are shown below. The equipment that would be used has a 3 - year tax
Jones Car Wash is considering a new project whose data are shown below. The equipment that would be used has a year tax life, would be depreciated by the straight line method over the project's year life, and would have zero salvage value. No new working capital would be required. Revenues and other operating costs are expected to be constant over the project's year life. If the number of cars washed declined by from the expected level, by how much would the project's NPV change? Hint: Cash flows are constant in Years
WACC
Net equipment cost depreciable basis$
Annual depreciation $
Number of cars washed
Average price per car $
Operating costs excl. depr'n $
Taxrate
$
$
$
$
$
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