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Laurels Lawn Care, Ltd., has a new mower line that can generate revenues of $165,000 per year. Direct production costs are $55,000, and the fixed
Laurels Lawn Care, Ltd., has a new mower line that can generate revenues of $165,000 per year. Direct production costs are $55,000, and the fixed costs of maintaining the lawn mower factory are $22,500 a year. The factory originally cost $1.1 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 firms tax bracket is 35%.(Enter your answer in dollars not in millions.) |
Operating cash flows | $ |
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