Jones Car Wash is considering a new project whose data are shown below. The equipment that would be used has a $3-$year tax life,

would be depreciated by the straight line method over the project's $3$ 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 $3-$year life. If the

number of cars washed declined by $50\%$ from the expected level, by how much would the project's NPV change? $($Hint: Cash flows

are constant in Years $1-3.)$

WACC $10\%$

Net equipment cost $($depreciable basis$),$$$60,000$

Annual depreciation

Number of cars washed

$$20,000$

Average price per car

$2,800$

Operating costs excl. depr'n

$$25$

Tax rate

$$25,000$

$35\%$

$($A$)-$$$74,781$

$-$$$78,385$

$-$$$82,578$

$-$$$85,713$

$-$$$56,576$