johnnys lunches is considering purchasing a new energy-efficient grill. the grill will cost $40000 and will be depreciated straight-line over 3 years. it will be sold for scrap metal after 5 years for $10000. the grill will have no effect on revenues but will save johnnys $20000 in energy expenses. the tax rate is 30%.?

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See Answer. Johnny’s Lunches is considering purchasing a new energy-efficient grill. The grill will cost $50000 and will be depreciated straight-line over 3 years. It will be sold for scrap metal after 5 years for $12500. The grill will have no effect on revenues but will save Johnny’s $25000 in energy expenses. The tax rate is 30%.