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johnny's lunches is considering purchasing a new energy-efficient grill. the grill will cost $42,000 and will be depreciated straight line over 3 years. it will
johnny's lunches is considering purchasing a new energy-efficient grill. the grill will cost $42,000 and will be depreciated straight line over 3 years. it will be sold for scrap metal after 5 years for $10,5000. the grill will have no effect on revenues but will save johnny's $21,000 energy expenses. the tax rate is 3%. what are the operating cash flows in each year? what are the total cash flows in each year? assuming discount rate is 10%, calculate net profit value of the cash flow stream. should the grill be purchased?
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