Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 120000 400000 400000 300000 Cost of Goods Sold 60000 200000 200000 150000 Gross Profit 60000 200000 200000 150000 Selling, General and Admin 6400 6400 6400 6400 Depreciation 70000 70000 70000 70000 EBIT 16400 123600 123600 73600 Income tax (35 ) 5740 43260 43260 25760 Incremental Earnings 22140 80340 80340 47840 Capital Purchaes 280,000 Change to NWC 5,000 5,000 5,000 5,000 A garage is installing a new bubble wash car wash It will promote the car wash as a fun activity for the family, and it is expected that the novelty of this approach will boost sales in the medium term If the cost of capital is 10 , by using the data in the table above, calculate the net present value (NPV) of this project A $92,193 B $87,341 C $97,045 D

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Question: Year 0 Year 1 Year 2 Year 3 Year 4 Revenue 120000 400000 400000 300000 Cost of Goods Sold -60000 -200000 -200000 150000 Gross Profit

Year 0	Year 1	Year 2	Year 3	Year 4
Revenue		120000	400000	400000	300000
Cost of Goods Sold		-60000	-200000	-200000	150000
Gross Profit		60000	200000	200000	150000
Selling, General and Admin		-6400	-6400	-6400	-6400
Depreciation		-70000	-70000	-70000	-70000
EBIT		-16400	123600	123600	73600
Income tax (35%)		5740	-43260	-43260	-25760
Incremental Earnings		-22140	80340	80340	47840

Capital Purchaes	-280,000
Change to NWC		-5,000	-5,000	-5,000	-5,000

A garage is installing a new "bubble-wash" car wash. It will promote the car wash as a fun activity for the family, and it is expected that the novelty of this approach will boost sales in the medium term. If the cost of capital is

10%,

by using the data in the table above, calculate the net present value (NPV) of this project.

$92,193

$87,341

$97,045

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