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Johnny s Lunches is considering purchasing a new, energy - efficient grill. The grill will cost $ 4 3 , 0 0 0 and will
Johnnys Lunches is considering purchasing a new, energyefficient grill. The grill will cost $ and will be depreciated straightline over years. It will be sold for scrap metal after years for $ The grill will have no effect on revenues but will save Johnnys $ in energy expenses. The tax rate is
Required:
What are the operating cash flows for years each year?
What are the total cash flows in years
Assuming the discount rate is calculate the net present value NPV of the cash flow stream. Should the grill be purchased?
The last answer you gave was incorrect and I really need help!
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