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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
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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 $ 75,250Step by Step Solution
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