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What are the operating cash flows in years one to four

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Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $30,000 and will be depreciated straight-line over 4 years to a salvage value of zero. The grill will have no effect on revenues, but will save Johnny's $18,000 in energy expenses. The tax rate is 26 percent.

Problem 1: What are the operating cash flows in years 1 to 4?

Reference no: EM132755654

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