Use the table for the question(s) below.

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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%,what is the net present value (NPV)of this project?

Question

Use the table for the question(s) below.
 
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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%,what is the net present value (NPV)of this project?

Quizplus · Accepted Answer

E) CF0 = -280,000
CF1 = 7,800 + 42,000 + 5000 = 54,800;
CF2 = 79,690 + 71,400 + 5000 = 156,090;
CF3 = 93,613 + 49,980 + 5000 = 148,593;
CF4 = 70,859 + 34,986 + 5000 = 110,845;
using a financial calculator: calculating NPV at 10% = $86,167.

Use the Table for the Question(s) Below