he Spotless Automobile Corporation is contemplating the acquisition of an automatic car wash. The Dllowing information is relevant: The cost of the car wash is $160,000 The anticipated revenue from the car wash is $100,000 per annum. The useful life of the car wash is 10 years. Annual operating costs are expected to be: Salaries $30,000 9,600 4,400 6,000 10,000 Utilities Water usage Supplies Repairs/maintenance The firm uses straight-line depreciation. The salvage value for the car wash is zero. The company's cutoff points are as follows Payback Accounting rate of return Internal rate of return 3 уears 18% 18% gnore income taxes.

he Spotless Automobile Corporation is contemplating the acquisition of an automatic car wash. The Dllowing information is relevant: The cost of the car wash is $160,000 The anticipated revenue from the car wash is $100,000 per annum. The useful life of the car wash is 10 years. Annual operating costs are expected to be: Salaries $30,000 9,600 4,400 6,000 10,000 Utilities Water usage Supplies Repairs/maintenance The firm uses straight-line depreciation. The salvage value for the car wash is zero. The company's cutoff points are as follows Payback Accounting rate of return Internal rate of return 3 уears 18% 18% gnore income taxes.

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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