Revenue Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings Capital Purchas Change to NWC Year O OA -$103.325 OB. $126,206 OC $114,805 OD -$100.065 -280,000 Year 1 120000 -40000 60000 -6200 -71000 -17200 6020 -23220 Year 2 410000 -205000 205000 -6200 -71000 127800 -44730 83070 Year 3 410000 -205000 205000 -6200 -71000 127800 44730 83070 Year 4 310000 155000 156000 6200 -71000 77800 -27230 50570 -5,000 -5,000 -5,000 -5,000 A garage is instating 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 9%, by in the table above, calculate the net present value (NPV) of this project

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Revenue
Cost of Goods Sold
Gross Profit
Selling, General and Admin
Depreciation
EBIT
Income tax (35%)
Incremental Earnings
Year Of
OA -$103.325
OB. $126,206
OC. $114,805.
OD. -$109.065
-280,000
Year 1
120000
-60000
60000
-6200
71000
-17200
6020
-23220
Year 2
410000
-205000
205000
-6200
-71000
127800
-44730
83070
Year 3
410000
-205000
205000
-6200
-1000
127800
44730
83070
Year 4
310000
155000
Capital Purchas
Change to NWC
-5,000
-5,000
-5,000
5,000
A garage is instating 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 9%, by a
in the table above, calculate the net present value (NPV) of this project
155000
-6200
-71000
77800
-27230
50570
Transcribed Image Text:Revenue Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Incremental Earnings Year Of OA -$103.325 OB. $126,206 OC. $114,805. OD. -$109.065 -280,000 Year 1 120000 -60000 60000 -6200 71000 -17200 6020 -23220 Year 2 410000 -205000 205000 -6200 -71000 127800 -44730 83070 Year 3 410000 -205000 205000 -6200 -1000 127800 44730 83070 Year 4 310000 155000 Capital Purchas Change to NWC -5,000 -5,000 -5,000 5,000 A garage is instating 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 9%, by a in the table above, calculate the net present value (NPV) of this project 155000 -6200 -71000 77800 -27230 50570
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