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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $32,000 and will bedepreciated straight-line over 3 years. It will be sold

Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $32,000 and will bedepreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $8,000. The grill will have no effect on revenues but will save Johnny's $16,000 in energy expenses. The tax rate is 30%.

a.What are the operating cash flows in each year? (answer $14399.68)

b.What are the total cash flows in each year? I don't know

c.Assuming the discount rate is 12%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased (need help)

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