Done on Paper Please

Larrys Lunches is considering purchasing a new, energy efficient grill. The grill will cost $20,000 and belongs to an asset class that has a CCA rate of 30%. The grill will be sold for scrap after 3 years for $5,000. The grill will have no effect on revenues but will save Larrys $10,000 per year in energy expenses. Larrys tax rate is 35% and the cost of capital is 12%. Prepare a NPV analysis and determine whether Larrys should purchase the new grill. Assume the Accelerated Investment Incentive applies.