(Ignore income taxes in this problem.) Lichty Car Wash has some equipment that needs to be rebuilt or replaced. The following information has been gathered concerning this decision: 
Lichty uses the total-cost approach and a discount rate of 10% in making capital budgeting decisions. Regardless of which option is chosen, rebuild or replace, at the end of five years Mr. Lichty plans to close the car wash and retire.
-If the new equipment is purchased,the present value of the annual cash operating costs associated with this alternative is:
Definitions:
Offer Price
The price at which someone is willing to sell a security, asset, or commodity; also known as the ask price.
Price-Earnings Ratio
A financial metric used to evaluate a company's share price relative to its per-share earnings, indicating how much investors are willing to pay per dollar of earnings.
Fixed Assets
Long-term tangible assets held for business use and not expected to be converted to cash in the current or upcoming fiscal year.
Net Present Value
Net Present Value (NPV) represents the disparity between cash inflows' present value and cash outflows' present value throughout a specified timeframe.
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