Question
How can I find the operating cash flows in each year 0 through 3 and the total cash flows in each year. Also, the discount
How can I find the operating cash flows in each year 0 through 3 and the total cash flows in each year. Also, the discount rate is 12%, please advise how to calculate the net present value of the cash flow stream. Please explain how to determine if the grill be purchased?
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $46,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $11,500. The grill will have no effect on revenues but will save Johnny's $23,000 in energy expenses per year. The tax rate is 35%
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