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Fuzzy Restaurant is considering the purchase of a $3,500,000 flat top grill. The grill has an economic life of 7 years and will be fully
Fuzzy Restaurant is considering the purchase of a $3,500,000 flat top grill. The grill has an economic life of 7 years and will be fully depreciated using the straight-line method. The grill is expected to produce 125000 tacos per year for the next 7 years, with each costing $2 to make and priced at $6.50. Assume the discount rate is 9% and the tax rate is 21%. Calculate the book value of the grill at the end of year 5. (Round to 2 decimals)
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