The Awesome Automobile Corporation Is Contemplating the Acquisition of an Automatic

The Awesome Automobile Corporation is contemplating the acquisition of an automatic car wash.The following information is relevant:
The cost of the car wash is $\$ 160,000$
The anticipated revenue from the car wash is $\$ 100,000$ per year.
The useful life of the car washis 10 years.
Anmul operating costs are expected to be:
$\begin{array}{ll}\text { Salaries } & \$ 30,000 \\ \text { Utilities } & 9,600 \\ \text { Water usage } & 4,400 \\ \text { Supplies } & 6,000 \\ \text { Repars/maintenance } & 10,000 \\ & \\ & \end{array}$
The firm uses straight-line depreciation
The salvage value for the car wash is zero.
The company's cutuf points are as follows:
\begin{array}{ll}\text { Payback } &3 years \\\text {Accounting rate of return } & 18 \% \\\\text { Internal rate of retune } &18\%\\\\end{array}
Ignore income taxes.
Required:
a. Compute the annual cash inflow.
b. Compute the net present value.
c. Compute internal rate of return.
d. Compute the payback period.
e. Compute the profitability index.
f. Should the car wash be purchased?