Answered step by step
Verified Expert Solution
Link Copied!

Question

00
1 Approved Answer

Is this answer correct? Laurel's Lawn Care Ltd., has a new mower line that can generate revenues of $156,000 per year. Direct production costs are

image text in transcribedIs this answer correct?

Laurel's Lawn Care Ltd., has a new mower line that can generate revenues of $156,000 per year. Direct production costs are $52,000, and the fixed costs of maintaining the lawn mower factory are $21,000 a year. The factory originally cost $1.30 million and is being depreciated for tax purposes over 25 years using straight-line depreciation. Calculate the operating cash flows of the project if the firm's tax bracket is 25%. (Enter your answer in dollars not in millions.) Operating cash flows $ 75,250

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started