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Assume it is January 2018 and Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $19,200 and will be depreciated in

Assume it is January 2018 and Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $19,200 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 $3,600. The grill will have no effect on revenues but will save Johnny's $10,800 in energy expenses. The firm has other assets in this asset class. The tax rate is 35%. Assume the discount rate is 14%. a. What are the operating cash flows in years 1 to 3?

the operating cash flow in year 2018 $
the operating cash flow in year 2019 $
the operating cash flow in year 2020 $

b.What are total cash flows in years 1 to 3?

the total cash flow in year 2018 $
the total cash flow in year 2019 $
the total cash flow in year 2020 $

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