Johnny's 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 Johnny's $ in energy expenses. The tax rate is
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 calculate the net present value NPV of the cash flow stream. Should the grill be purchased
Complete this question by entering your answers in the tabs below.
Required A
Required C
What are the operating cash flows in each year?
Note: Do not round intermediate calculations. Round your answers to decimal places.
tableYeartableOperating CashFlows
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