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Laurel's Lawn Care Limited has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed
Laurel's Lawn Care Limited has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed costs of maintaining the lawn mower factory are $17,500 a year. The factory originally cost $0.90 million and is being depreciated for tax purposes over 20 years using straight-line depreciation. Calculate the operating cash flows of the project if the firm''s tax bracket is 25%. What is the operating cash flows?
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