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Johnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $34,000 and will be depreciated according to the 3-year MACRS schedule. It
Johnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $34,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 5 years for $8500. The grill will have no effect on revenues but will save Johnnys $17,000 in energy expenses per year. The tax rate is 30%. Use the MACRS depreciation schedule. b. What are the total cash flows in each year?
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