A) Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $18,000 and will be depreciated straight-line over 8 years to a salvage value of zero. The grill will have no effect on revenues, but will save Johnny's $19,000 in energy expenses. The tax rate is 39 percent. What are the operating cash flows in years 1 to 8?

B) You estimate that your soy farm will generate 1.3 million of profits on sales of 5.5 million under normal economic conditions. If sales turn out to by 5.7 million, profits are expected to be 1.7 million. What is the degree of operating leverage? Enter your answer rounded to two decimal places.