Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $18,400 and will be depreciated in an asset class that carries a CCA rate of 30%. It will be sold for scrap metal after 3 years for $4,800. The grill will have no effect on revenues but will save Johnny's $8,200 in energy expenses. The firm has other assets in this asset class. The tax rate is 35%.

a.What are the operating cash flows in years 1 to 3?(Round your answers to the nearest cent.)

b.What are total cash flows in years 1 to 3?(Round your answers to the nearest cent.)

c.If the discount rate is 14%, should the grill be purchased?