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Quickwash Laundromat is considering opening a new location. They anticipate cash flows from the new...

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Finance

Quickwash Laundromat is considering opening a new location. They anticipate cash flows from the new location to be $25,559 collected at the end of each year with the first payment made in 3 years from today (one year after the go operational). After 17 years, they anticipate increased maintenance costs what will cause profits to drop to $13,292 a the end of each year forever. Find the value of the new location today if the interest rate is 4.32%.

Note: to clarify the cash flows:

- At the end of year 17 the laundromat will yield profit of $25,559

- one year later the laundromat will yield profit of $13,292

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