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Johnny s Lunches is considering purchasing a new, energy - efficient grill. The grill will cost $ 3 0 , 0 0 0 and will

Johnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $30,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $7,500. The grill will have no effect on revenues but will save Johnnys $15,000 in energy expenses. The tax rate is 30%.

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