Calculate operating cash flows of the project

Assignment Help Financial Management

Reference no: EM132014496

Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $126,000 per year. Direct production costs are $42,000, and the fixed costs of maintaining the lawn mower factory are $16,000 a year. The factory originally cost $1.05 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 firm’s tax bracket is 30%. (Enter your answer in dollars not in millions.)

Reference no: EM132014496

Questions Cloud

Considering making movie : You are considering making a movie. The movie is expected to cost $10.6 million up front and take a year to produce.

What is the bond''s current market price : Callaghan Motors' bonds have 7 years remaining to maturity. What is the bond's current market price?

The irr rule advise regarding payment arrangement : What does the IRR rule advise regarding the payment arrangement?

What is arthur fixed costs : Arthur crafts miniature choclate dollhouses which he sells for $22 each. What is Arthur's fixed costs?

Calculate operating cash flows of the project : Calculate the operating cash flows of the project if the firm’s tax bracket is 30%.

Explain the different types of counter trade : Explain the different types of counter trade. In many cases, counter trade deals involve not just one type, but have elements of two or more

What annual contributions to the retirement fund : What annual contributions to the retirement fund will allow you to receive the $30,000 annuity?

What will be her yearly annuity : What will be her yearly annuity for the next 15 years?

What is the present value of these payments : What is the present value of these payments if the discount rate is 7 percent? What rate of return will Mr. Templeton need in order to achieve this goal?

User Account

All Pages