Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $19,000 and will be depreciated straight-line over 9 years to a salvage value of zero. The grill will have no effect on revenues, but will save Johnny's $12,000 in energy expenses. The tax rate is 32 percent.

a) What are the operating cash flows in years 1 to 9?

b) If the discount rate is 14 percent, what is the net present value of the grill?

Use the correct value for operating cash flow.