Provided answers must be in Excel Formulas Format and should go in the yellow and green cells.

2 Capital Budgeting 4 The Tracey Company is thinking of opening a small laundromat. Here is the information 5 needed to make a decision about this investment: 6 7 All yellow cells must be a formula or cell reference in order to get full credit. 8 Cost of equipment 9 Required working capital 10 Charge per use for washers 11 Charge per use for dryers 12 Expected weekly gross for washers 13 Expected weekly gross for dryers 14 Variable cost per use for washers 15 Variable cost per use for dryers 16 Fixed costs PER MONTH: 17 18 19 20 Salvage value of equipment in 6 years 21 Required rate of return 22 Weeks per year the laundromat is open 23 24 Required: 25 (1) Assuming the laundromat would be open 52 weeks a year, compute the expected 26 annual net cash receipts from its operations (gross cash receipts less cash disbursements) 27 $194,000 $6,000 washers, dryers, and other equipment soap, etc. Will be released at end of Yr 6 $1.50 per USE $0.75 per USE $1,800 per WEEK $1,125per WEEK $0.075 $0.09 per USE for water and electricity per USE for gas and electricity Building rent Cleaning Maintenance, insurance, other $3,000 per MONTH $1,500 per MONTH $1,875 per MONTH 10% 12% 52