Johnny$$s Lunches is considering purchasing a new, energy$-$efficient grill. The grill will cost $$44,000$ and will be depreciated straight$-$line over $3$ years. It will be sold for scrap metal after $5$ years for $$11,000.$ The grill will have no effect on revenues but will save Johnny$$s $$22,000$ in energy expenses. The tax rate is $30\%.$ What are the operating cash flows in each year? What are the total cash flows in each year?Johnny's Lunches is considering purchasing a new, energy$-$efficient grill. The grill will cost $$44,000$ and will be depreciated straight$-$

line over $3$ years. It will be sold for scrap metal after $5$ years for $$11,000.$ The grill will have no effect on revenues but will save Johnny's

$$22,000$ in energy expenses. The tax rate is $30\%.$

Required:

a$.$ What are the operating cash flows in each year?

b$.$ What are the total cash flows in each year?

c$.$ Assuming the discount rate is $11\%,$ calculate the net present value $($NPV$)$ of the cash flow stream. Should the grill be purchased?

Answer is complete but not entirely correct.

Complete this question by entering your answers in the tabs below.

What are the total cash flows in each year?

Note: Negative amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers

to $2$ decimal places.