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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $45,000 and will be depreciated according to the 3 year MACRS schedule
Johnny's Lunches is considering purchasing a new, energy-efficient
grill. The grill will cost $45,000 and will be depreciated according to the 3 year MACRS schedule (33.33% yr 1, 44.45% yr 2, 14.81% yr 3, 7.41% yr 4.) . It will be sold for scrap metal after 3 years for $2050. The annual sales are 18,500 and the annual COGS is $3500, and the firms tax rate is 30%. What are annual operating cash flows and terminal value? You do not have to calculate NPV or IRR just give me OCF for each year and tv
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