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Johnny's Lunches is considering purchasing a new, energy efficient grill. The grill will cost $39,000 and will be depreciated according to the 3-year MACRS schedule.

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Johnny's Lunches is considering purchasing a new, energy efficient grill. The grill will cost $39,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $9,750. The grill will have no effect on revenues but will save Johnny's $19,500 in energy expenses per year. The tax rate is 30%. Use the MACRS depreciation schedule. a. What are the operating cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Operating Cash Flows b. What are the total cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places) Cash FloWS c. Assuming the discount rate is 10%, calculate the net present value (NPV) of the cash flow stream Should the gna beachased?to not round intermediate celculetions. Round your answer to 2 decimal places NPV of cash fow stream Shouild the grill be purchased

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