Calculate operating cash flows of the project

Assignment Help Financial Management

Reference no: EM132020545

Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $177,000 per year. Direct production costs are $59,000, and the fixed costs of maintaining the lawn mower factory are $24,500 a year. The factory originally cost $1.18 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 40%.

Reference no: EM132020545

Questions Cloud

What type of value is shown on the firms balance sheet : What type of value is shown on the firms balance sheet? Which of the following requires full disclosure of credit terms?

New in the basal requirements : New in the Basal requirements and the effective and ineffective aspects that it has on banks.

Methods to calculate cash flow from operations : What are the three methods to calculate cash flow from operations?

Calculate operating cash flow for the year : Calculate operating cash flow for the year by using all three methods. Dollars in minus dollars out. Add back depreciation tax shield.

Calculate operating cash flows of the project : Calculate the operating cash flows of the project if the firm’s tax bracket is 40%.

Additional cash flows associated with termination of project : what is the free cash flow in year 10 plus any additional cash flows associated with termination of the project.

Calculate the payback period for this project : Calculate the IRR for this project. Calculate the payback period for this project.

What is the expected return on well-diversified portfolio : What is the expected return on a well-diversified portfolio with a standard deviation of 8.2 percent?

Preferred stock valuation : Preferred stock valuation Earley Corporation issued perpetual preferred stock with a 11% annual dividend. What is its new market value?

User Account

All Pages