Johnny's Lunches is considering purchasing a new, energy$-$efficient grill. The grill will cost $$40,000$ and will be depreciated straightline over $3$ years. It will be sold for scrap metal after $5$ years for $$10,000.$ The grill will have no effect on revenues but will save Johnny's $$20,000$ 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 $12\%,$ calculate the net present value $($NPV$)$ of the cash flow stream. Should the grill be purchased?

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

Required A

Required B

Required C

What are the operating cash flows in each year?

Note: Do not round intermediate calculations.

$\backslash$table$[[$Year$,\backslash$table$[[$Operating Cash$],[$Flows$]]],[0,],[1,],[2,],[3,],[4,],[5,]]$