me Dominion tnergy Bank f meitca Health A ly Ado inance Vehicle eWate Long n Acc

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.)

Explanation / Answer

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

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