Calculate the operating cash flows

Assignment Help Financial Accounting

Reference no: EM13826295

Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed costs of maintaining the lawn mower factory are $17,500 a year. The factory originally cost $0.9 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 30%. (Enter your answer in dollars not in millions.)

Reference no: EM13826295

Questions Cloud

Report on development and management of strategic marketing : Report On Development And Management Of Strategic Marketing Plan

Explain about futures price calculation : Today is 31st May. The yield on T-bills is 3% per annum. The futures price for June 30th delivery of Gold is $1593.60 for December 30th delivery the price is $1600.00.

Calculate the net present value-cost of capital : NPV Calculate the net present value (NPV) for the following 15-year projects. Comment on the acceptability of each. Assume that the firm has a cost of capital of 9%.

Write detailed report on chinas growth in last thirty years : The question is belongs to Economics and the question is about the growth rate achieved by China in the last 30 years beginning from 1978 to 2009.

Calculate the operating cash flows : Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $135,000 per year. Direct production costs are $45,000, and the fixed costs of maintaining the lawn mower factory are $17,500 a year. The factory originally cost $0.9 millio..

Calculation of capm of a company : Calculate the CAPM for a company and write a report on it. The chosen company is Fidelity National Information Services (FIS) listed on the NYSE.

Distance vector routing with link state routing : Describe the differences between a repeater, a switch and a router. Why is a router generally more expensive and complex than a switch, and why is a switch generally more complex and expensive than a repeater?

What else might affect the interest rate on a bond : How does collateral affect the interest rate on a bond? How does subordination affect the interest rate on a bond too? What else might affect the interest rate on a bond? What is Chapter 7 liquidation and Chapter 11 reorganization? When should each b..

Briefly discuss the general shape of yield curve : Using the Wall Street Journal or Barron’s, find the bond yields for Treasury securities with the following maturities: three months, six months, one year, three years, five years, 10 years, 15 years, and 20 years. Briefly discuss the general shape of..

User Account

All Pages