Assume it is January 2018 and Johnny's Lunches is considering purchasing a new, energy-efficient grill....
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Accounting
Assume it is January 2018 and Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $21,200 and will be depreciated in an asset class that carries a CCA rate of 30%. It will be sold for scrap metal after 3 years for $4,300. The grill will have no effect on revenues but will save Johnny's $10,600 in energy expenses. The firm has other assets in this asset class. The tax rate is 35%. Assume the discount rate is 12%. a. What are the operating cash flows in years 1 to 3? (Do not round intermediate calculations. Round your answers to the nearest whole dollar.) b. What are total cash flows in years 1 to 3 ? (Do not round intermediate calculations. Round your answers to the nearest whole dollar. Enter negative values with a minus sign.) c. If the discount rate is 12%, should the grill be purchased
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