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Laurels Lawn Care, Ltd., has a new mower line that can generate revenues of $168,000 per year. Direct production costs are $56,000, and the fixed
Laurels Lawn Care, Ltd., has a new mower line that can generate revenues of $168,000 per year. Direct production costs are $56,000, and the fixed costs of maintaining the lawn mower factory are $23,000 a year. The factory originally cost $1.4 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 40%. (Enter your answer in dollars not in millions.)
Operating cash flows $ _________
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