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Johnny’s Lunches is considering purchasing a new,energy-efficient grill. The grill will cost $37,000 and will bedepreciated according to the 3-year MACRS schedule. It will be soldfor scrap metal after 3 years for $9,250. The grill will have noeffect on revenues but will save Johnny’s $18,500 in energyexpenses per year. The tax rate is 40%. Use the MACRS depreciationschedule.a. What are the operating cash flows in each year? (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)b. What are the total cash flows in each year? (Do not roundintermediate calculations. Round your answers to 2 decimalplaces.)c. Assuming the discount rate is 11%, calculate the net presentvalue (NPV) of the cash flow stream. Should the grill be purchased?(Do not round intermediate calculations. Round your answer to 2decimal places.)