| Gross Receipts | Units | |||
| Wash (2640*52) | 137280 | 68640 | ||
| Vaccum(Wash*.60/2) | 41184 | 41184 | ||
| Gross Receipts | 178464 | |||
| Less Payments | ||||
| Annual Rental =5700*12 | 68400 | |||
| Cleaning=3000*12 | 36000 | |||
| Insurance=75*12 | 900 | |||
| Maintenace=1785*12 | 21420 | |||
| Water =137280/2*0.2 | 13728 | |||
| Electricity=41184*.1 | 4118.4 | |||
| Total Disbursment | 144566.4 | |||
| Net Cash Receipt | 33897.6 |
| Year | Cash lfow | PVIF @10% | PV |
| 0 | -190000 | 1 | -190000 |
| 1-8 | 33897 | 5.1461 | 174437.4 |
| 8 | 19000 | 0.4339 | 8244.1 |
| NPV | -7318.55 |
| As the NPV is nagative therefore Mr.Duncan should not open the Car Wash. |
