Calculate the operating cash flows of the project

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Reference no: EM131968940

Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $174,000 per year. Direct production costs are $58,000, and the fixed costs of maintaining the lawn mower factory are $24,000 a year.

The factory originally cost $1.45 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 35%. (Enter your answer in dollars not in millions.)

Reference no: EM131968940

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