Fuzzy Restaurant is considering the purchase of a $3,500,000 flat top grill. The grill has an economic life of 7 years and will be fully depreciated using the straight-line method. The grill is expected to produce 125000 tacos per year for the next 7 years, with each costing $2 to make and priced at $6.50. Assume the discount rate is 9% and the tax rate is 21%.

Calculate the after-tax salvage value at the end of year 8. (Round to 2 decimals)

Calculate the initial cash outflow for the grill (e.g. the time 0 cash flow). (Enter a negative value and round to 2 decimals)

Answer rating: 100% (QA)

Okay lets solve this stepbystep 1 Depreciation per year Cost Usef... View the full answer