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(Solved): Fulmar Laundromat is trying to enhance the services it provides to customers, mostly college student ...



Fulmar Laundromat is trying to enhance the services it provides to customers, mostly college students. It is looking into the purchase of new high-efficiency washing machines that will allow for the laundry's status to be checked via smartphone. Fulmar estimates the cost of the new equipment at $191,000. The equipment has a useful life of 9 years. Fulmar expects cash fixed costs of $78,000 per year to operate the new machines, as well as cash variable costs in the amount of 5% of revenues. Fulmar evaluates investments using a cost of capital of 10%.


1. Calculate the payback period and the discounted payback period for this investment, assuming Fuimar expects to generate \(
Requirement 1. Calculate the payback period and the discounted payback period for this investment, assuming Fulmar expects to
Using the table you completed above and straight-line interpolation, calculate the investments payback. (Round your answer t
Now calculate the net initial investment unrecovered at the end of year with a discount by entering the appropriate amounts.
Using the table previously completed, calculate the discounted payback for the investment. (Round your answer to two decimal
1. Calculate the payback period and the discounted payback period for this investment, assuming Fuimar expects to generate \( \$ 150,000 \) in incremental revenues every year from the new machines. 2. Assume instead that Fulmar expects an uneven stream of incremental cash revenues from installing the new washing machines. Based on this estimated revenue stream, what are the payback and discounted payback periods for the invesiment? Requirement 1. Calculate the payback period and the discounted payback period for this investment, assuming Fulmar expects to generate \( \$ 150,000 \) in incremental revenues every year from the new machines. (Round your answer to two decimal places.) The payback period in years, for the investment assuming uniform net cash inflows is The discounted payback period in years, for the investment assuming uniform net cash inflows is Requirement 2. Assume instead that Fulmar expects an uneven sirean of incremental cash revenues from installing the new washing machines. Based on this estimated revenue stream, what are the payback and discounted payback periods for the investment? Start by determining the net initial investment unrecovered amounts at the end of each year by first entering the not cash inflow(outflow) amounts and then calculating the cumulative net cash flows for each year. (Use a minus enlgn or parentheses for net cash outliows and to show negative cumulative net cash flows. Once the net initial investment is fully recovered enter a zero for that year's line and for each subsequent year's line in the "net initial investment unrecovered at end of year" column.) Net Cash Cumulative Net Net initial investment unrecovered at end of vear Using the table you completed above and straight-line interpolation, calculate the investment's payback. (Round your answer to two decimal places.) The payback period in years, for the investment assuming nonuniform net cash inflows is Now calculate the net initial investment unrecovered at the end of year with a discount by entering the appropriate amounts. (Use a minus sign or parentheses for net cash cutflows and to show negative cumulative net cash flows. Round your answers to the nearest whole number.) Now calculate the net initial investment unrecovered at the end of year with a discount by entering the appropriate amounts. (Use a minus sign or parentheses for net cash outflows and to show negative cumulative net cash flows. Round your answers to the nearest whole number.) Using the table previously completed, calculate the discounted payback for the investment. (Round your answer to two decimal places.) A. \( 5.88 \) B. \( 5.38 \) C. \( 5.63 \) D. \( 5.78 \)


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1.Requirement Payback period=Initial Investment/Annual Net Cash inflow =$191,000/$64,500 =2.96124 year =2.96 year Particulars $ Increment Revenue 150,
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