Johnny s Lunches is considering purchasing a new, energy - efficient grill. The grill will cost $
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Question:
Johnnys Lunches is considering purchasing a new, energyefficient grill. The grill will cost $ and will be depreciated straightline over years. It will be sold for scrap metal after years for $ The grill will have no effect on revenues but will save Johnnys $ in energy expenses. The tax rate is
Required:
What are the operating cash flows in each year?
What are the total cash flows in each year?
Assuming the discount rate is calculate the net present value NPV of the cash flow stream. Should the grill be purchased? Do not round calculations. round final answers to two decimal places
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