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Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $165,000 per year. Direct production costs are $77,500 a year. The

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Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $165,000 per year. Direct production costs are $77,500 a year. The factory originally cost $1.1 million and 1/20th of this cost is depreciated every year for the next 20 years. Calculate the operating cash flows of the project this year if the firm's tax bracket is 35%. O 55,000 O 21,125 0-1.1 million O 76,125 Sheryl's Shipping had sales last year of $20,000. The cost of goods sold was $8,500, general and administrative expenses were $3,000, interest expenses were $2,500, and depreciation was $3,000. The firm's tax rate is 40%. Assume that there was a net working capital investment of $500 (i.e., change in NWC = $500) What is the cash flow for Sheryl's Shipping? 4300 1800 4800 1300

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