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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $25,000 and will be depreciated straight-line over 8 years to a salvage
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $25,000 and will be depreciated straight-line over 8 years to a salvage value of zero. The grill will have no effect on revenues, but will save Johnny's $16,000 in energy expenses. The tax rate is 38 percent. What are the operating cash flows in years 1 to 8? Enter your answer below. 11107.50 Correct response: 11,107.5 If the discount rate is 20 percent, what is the net present value of the grill? Use the correct value for operating cash flow. Enter your answer below. Number
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