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Laurels Lawn Care Limited has a new mower line that can generate revenues of $150,000 per year. Direct production costs are $50,000, and the fixed
Laurels Lawn Care Limited has a new mower line that can generate revenues of $150,000 per year. Direct production costs are $50,000, and the fixed costs of maintaining the lawn mower factory are $20,000 a year. The factory originally cost $1.25 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 firms tax bracket is 25%.
operating cash flows:
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