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Johnny's Lunches is considering purchasing a new.energy-efficient grill The grill will cost $33,000 and will be depreciated straight- line over 3 years. It will be
Johnny's Lunches is considering purchasing a new.energy-efficient grill The grill will cost $33,000 and will be depreciated straight- line over 3 years. It will be sold for scrap metal after 5 years for $8.250 The grill will have no effect on revenues but will save Johnny's $16.500 in energy expenses. The tax rate is 30% Required: .. What are the operating cash flows in each year? b. What are the total cash flows in each year? c. Assuming the discount rate is 10%, calculate the net present value (NPV) of the cash flow stream Should the grill be purchased? Complete this question by entering your answers in the tabs below. Required A Required B Flequired What are the operating cash flows in each year? (Do not round intermediate calculations. Round your ato 2 decimal Year Operating Cash Flows 2 3 Required) Johnny's Lunches is considering purchasing a new energy efficient grill The grill will cost $33,000 and will be depreciated straight- une over 3 years. It will be sold for scrap metal after 5 years for $8,250. The grill will have no effect on revenues but will save Johnny's $16,500 in energy expenses. The tax rate is 30%. Required: a. What are the operating cash flows in each year? b. What are the total cash flows in each year? c. Assuming the discount rate is 10%, calculate the net present value NPV) of the cash row stream. Should the grill be purchased? Complete this question by entering your answers in the tabs below. Requid . Required What are the total cash flows in each year? (Negative amounts should be indicated with a minus sign. Do not found intermediate calculations. Round your answeredesimal places Tome Total.Cash Flow D 1 2 Required A RC > Johnny's Lunches is considering purchasing a new energy efficient get the grill.cou $33,000 and will be depreciated straight line over 3 years. It will be sold for scrap metal after 5 years for $8,250. The grill will have no effect on tevenues but will save Johnny's $16.500 in energy expenses The tax rate is 30% Required: a. What are the operating cash flows in each year? b. What are the total cash flows in each year C. Assuming the discount rate is 10%. calculate the net present Value (NPV) of the cash flow stream Should the grill be purchased? Complete this question by entering your answers in the tabs below. Required A Required Required Assuming the discount rate 10%, calculate the nat present value (NPV of the cash flow stream. Should the grill be purchased to run intermediate calculations. Round your and places NEV of cash flow Should the gre pesh
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