Johnny's Lunches is considering purchasing a new, energyefcient grill. The grill will cost $32,000 and will be depreciated straight line over 3 years. It will be sold for scrap metal after 5 years for $8,000. The grill will have no effect on revenues but will save John ny's $16,000 in energy expenses. The tax rate is 30%. Required: a. What are the operating cash flows in each yea r? b. What are the total cash flows in each year? 1:. 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 labs below. Required A Required B Required C What are the operating cash ows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Required B > If you insulate 1your ofce for $12,000, you will save $1,203 a year in heating expenses- These savings will last forever a. What is the NPV of the investment when the cost of capital is 5%?105'6? Cost of Capital HPV b. What is the IRR of the investment? {Enter your answer as a whole percent} 1:. What is the payback period on this investment? @