Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $165,000 per year.
Fantastic news! We've Found the answer you've been seeking!
Question:
Laurel's 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 $1.10 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 35%.(Enter your answer in dollars not in millions.)
Posted Date: