Spot-Free Car Wash is considering a new project whose life is 3 years. The initial equipment...

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Spot-Free Car Wash is considering a new project whose life is 3 years. The initial equipment cost is $60,000 which is depreciated by $20,000 each year. No new working capital or capital expenditure would be required. The project has no salvage value. Revenues and fixed costs will be constant over the project's life. The price per wash does not change. Help the company run a scenario analysis: what would the NPV be if annual number of cars washed declined to 62% of its expected level (and remained at that level for the next 3 years)? WACC Initial Investment Expected number of cars 10.00% $60,000 2,800 Average price per wash $25.00 Fixed cost (excl. depreciation.) $10,000 Variable cost per car washed $5.38 Annual depreciation Tax rate $20,000 35.00% [Enter your answer is dollar amounts, rounded to two decimal points. If your answer is negative, make sure you enter it with a negative sign.] Previous MacBook Pro Spot-Free Car Wash is considering a new project whose life is 3 years. The initial equipment cost is $60,000 which is depreciated by $20,000 each year. No new working capital or capital expenditure would be required. The project has no salvage value. Revenues and fixed costs will be constant over the project's life. The price per wash does not change. Help the company run a scenario analysis: what would the NPV be if annual number of cars washed declined to 62% of its expected level (and remained at that level for the next 3 years)? WACC Initial Investment Expected number of cars 10.00% $60,000 2,800 Average price per wash $25.00 Fixed cost (excl. depreciation.) $10,000 Variable cost per car washed $5.38 Annual depreciation Tax rate $20,000 35.00% [Enter your answer is dollar amounts, rounded to two decimal points. If your answer is negative, make sure you enter it with a negative sign.] Previous MacBook Pro