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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $18,000 and will be depreciated straight-line over 9 years to a salvage
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $18,000 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 $13,000 in energy expenses. The tax rate is 30 percent. What are the operating cash flows in years 1 to 9? Enter your answer below. 9700 Correct response: 9,700 If the discount rate is 7 percent, what is the net present value of the grill? Use the correct value for operating cash flow. Enter your answer below. Number Section Attempt 1 of 1 Verify
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