Johnnys lunches is considering purchasing a new, energy efficient grill. the grill will cost $34,000 and will be depreciated straightline over 3 years. it will be sold for scrap metal after 5 years for $8500. the grill will have no effect on revenues but will save Johnnys $17,000. the tax rate is 30%. a. what are the operating cash flows in each year? (years 1, 2, and 3) b. what are the total chash flows in each year? (years 0,1,2,3) c. assuming the discount rate is 11%, calculate the net present value (NPV) of the cash flow stream. Should the grill be purchased?

You have been asked to estimate the market value of an income-producing property. The table below provides 5 years of projected cash flows for the property. Use the discounted cash flow approach to income valuation to calculate the market value. Assume that you sell the property at the end of year 5 and that the net proceeds from the sale are $5 million. Also assume that the discount rate is 10%. PGI EGI NOI Year 1 $4.18 million $750,000 $780,000 $811,200 $637,500 $663,000 $689,520 $318,750 $331,500 $344,760 $6.11 million $4.12 million Year 2 $4.40 million Year 3 Year 4 $843,648 $717,101 $358,550 Year 5 $877,394 $745,785 $372,892

Eskom, Inc. has 4-year project in South Africa with an annual operating cash flow of $47,500. Eskom spent $21,600 on an Electricity Supply Solar Tower to start the project. At the end of the project, the Electricity Supply Solar Tower will have a book value of $4,340, but can be salvaged for $5,430. If Eskom’s tax rate is 35%, what is the cash flow in Year 4? Note: Net working capital of $3,850 was needed at the start of the project. That money will be recovered at the end of the project. a. $48,699 b.$57,162 c. $54,880 d. $56,399 e. $18,392

You have a chance to invest in a shopping center. The total investment for the purchase of the land and construction of the center is $10,000,000 today. You have calculated the yearly net after tax cash flows from operations as follows: Year 1: $1,500,000 Year 2: 2,000,000 Year 3: 2,250,000 Year 4: 2,500,000 Year 5: 2,750,000 At the end of year 5 you will sell the shopping center for $18,000,000 after taxes. Required: |+ Use the provided Excel spreadsheet to calculate the present value of all the operating after-tax cash flows and the total cash flows for the project assuming you require an 20% R.O.I. Use the attached "PRESENT VALUE TABLE" for your calculations:

Suppose that a certain car has the following average operating and ownership costs. Average Costs per Mile Operating $0.24 a. If you drive 20,000 miles per year, what is total annual expense for this car? Ownership $0.68 Total $0.92 b. If the total annual expense for this car is deposited at the end of each year into an IRA paying 8.5% compounded yearly, how much will be saved at the end of nine nt - 1 years? Use the formula A = a. If you drive 20,000 miles per year, the total annual expense for this car is $ (Round to the nearest dollar as needed.)

Johnny's Lunches is considering purchasing a new, energy-efficient grill. The grill will cost $29,000 and will be depreciated straight-line over 8 years to a salvage value of zero. The grill will have no effect on revenues, but will save Johnny's $13,000 in energy expenses. The tax rate is 37 percent.   What are the operating cash flows in years 1 to 8?

Bruce is considering the purchase of a restaurant named Hard Rock Hollywood. The restaurant is listed for sale at $1,030,000. With the help of his accountant, Bruce projects the net cash flows (cash inflows less cash outflows) from the restaurant to be the following amounts over the next 10 years:     Years Amount   1-6 $ 83,000   (each year) 7   93,000     8   103,000     9   113,000     10   123,000         Bruce expects to sell the restaurant after 10 years for an estimated $1,130,000. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use appropriate factor(s) from the tables provided. Round your answer to 2 decimal places.)Required:1-a. Calculate the total present value of the net cash flows if Bruce wants to make at least 10% annually on his investment. (Assume all cash flows occur at the end of each year.)       1-b. Should he purchase the restaurant?