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Two years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that

Two years ago the Krusty Krab Restaurant purchased a grill for $50,000. The owner, Eugene Krabs, has learned that a new grill is available that will cook Krabby Patties twice as fast as the existing grill. This new grill can be purchased for $85,302 and would be depreciated straight line over 8 years, after which it would have no salvage value. The current grill is being depreciated straight line over its useful life of 2 years with no expected salvage value. The existing grill can be sold to another restaurant now for $30,926. The Krusty Krabs tax rate is 24%. How much is the incremental cash flow that the Krusty Krab will incur today (Year 0) if it elects to upgrade to the new grill?

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