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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $44,000 and will be depreciated according to the 3-year MACRS schedule. It
Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $44,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $11,000. The grill will have no effect on revenues but will save Johnny's $22,000 in energy expenses per year. The tax rate is 40%.Use theMACRS depreciation schedule.
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