Finance Assignment | Professional Writing
Year 0 Year 1 150000 Year 2 400000 -200000 -75000 Revenue Cost of Goods Sold Gross Profit Selling, General and Admin Depreciation EBIT Income tax (35%) Year 4 340000 170000 170000 -6200 -72000 75000 -6200 -72000 Year 3 400000 -200000 200000 -6200 -72000 121800 -42630 79170 200000 -6200 -72000 -3200 1120 121800 -42630 79170 91800 -32130 59670
Incremental Earnings -4320 -280,000 Capital Purchaes 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 9%, by using the data in the table above, calculate the net present value (NPV) of this project. O A. – $128,759 OB. $135,536 OC. $149,090 OD. – $121,982
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