Question: ERAU is considering purchasing a new, energy-efficient grill. The grill will cost $20,000 and will be depreciated according to the 3 year MACRS schedule given

ERAU is considering purchasing a new, energy-efficient grill. The grill will cost $20,000 and will be depreciated according to the 3 year MACRS schedule given below Year 1 33.33% Year 2 44.45% Year 3 14.81% Year 4 7.41% It will be sold for scrap metal after 3 years for $10,000. The grill will have no effect on revenues, but ERAU will save $20,000 in energy expenses. The tax rate is 40%. What will be the cash flow in year 3? $15,556.00 $17.777.60 $19.777.60 $13,184.80

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