Johnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $42,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $10,500. The grill will have no effect on revenues but will save Johnnys $21,000 in energy expenses per year. The tax rate is 30%.Use the MACRS depreciation schedule

. What are the operating cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

1

2

3

b. What are the total cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.)

0

1

2

3