Question: ter 9 Homework Savud Help Save & Exit Submit Check my work 5 Johnny's Lunches is considering purchasing a new, energy efficient grill. The grill
ter 9 Homework Savud Help Save & Exit Submit Check my work 5 Johnny's Lunches is considering purchasing a new, energy efficient grill. The grill will cost $41,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $10,250. The grill will have no effect on revenues but will save Johnny's $20,500 in energy expenses. The tax rate is 30%. Required: a. What are the operating cash flows in each year? b. What are the total cash flows in each year? c. Assuming the discount rate is 11%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased? ped int Complete this question by entering your answers in the tabs below. Required A Required B Required c What are the operating cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Year Operating Cash Flows 1 2 3 Required 3 >
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