johnny’s Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $43,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $10,750. The grill will have no effect on revenues but will save Johnny’s $21,500 in energy expenses. The tax rate is 30%.

• Required A
• Required B
• Required C

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

Year	Operating Cash Flows
1	$5,016.67
2	$5,016.67
3	$5,016.67

• Required A
• Required B
• Required C

What are the total cash flows in each year? (Negative amounts should be indicated with a minus sign. Do not round intermediate calculations. Round your answers to 2 decimal places.)

Time	Total Cash Flows
0	$43,000.00
1	$19,350.00
2	$19,350.00
3	$19,350.00

Assuming the discount rate is 12%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

NPV of cash flow stream	$25,849.64
Should the grill be purchased?	Yes