Question

me Dominion tnergy Bank f meitca Health A ly Ado inance Vehicle eWate Long n Acceavient Mo Help Save & is considering purchasing a new, energy-efficient grill. The grill will cost $39,000 and will be depreciated according to the 3-year MACRS schedule. It will be sold for scrap metal after 3 years for $9,750.The.grill will have.no.effest on revenues but will save Johnny's $19,500 in energy expenses per year The tax rate is 30%. Use theMA a. What are the operating cash flows in each year? ( places.) ound ear b. What are the total cash flows in each year? (Do not round intermediate calculations. Round your answers to 2 decimal places.) < Prev 6 of 15 Next >

Answer 1

Year	Cash outflows	Cash inflows	Depreciation rate	Depreciation per year	Operating cash flow
0	$39,000
1	$0	$19,500	33.33%	$12,998.70	$17,549.61
2	$0	$19,500	44.45%	$17,335.50	$18,850.65
3	$0	$19,500	14.81%	$5,775.90	$25,132.77
3	$0	$9,750