Question
ohnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $50,000 and will be depreciated straight-line over 3 years. It will be
ohnnys Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $50,000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $12,500. The grill will have no effect on revenues but will save Johnnys $25,000 in energy expenses. The tax rate is 30%.
b. What are the total cash flows in each year?
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.)
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