Fuzzy Restaurant is considering the purchase of a $2,500,000 flat top grill.The grill has an economic life of 8 years and will be fully depreciated using straight line method.The grill is expected to produce 150,000 tacos per year for the next 8 years, with each costing $1.50 to make and priced at $5.Assume the discount rate is 10% and the tax rate is 21%. The restaurant expects the market value of the grill to be $450,000, 8 years from now.

A.) Calculate the book value of the grill at the end of year 5.

B.) Calculate the operating cash flow at the end of year 1.