Solution-Calculate the operating cash flows of the project

Calculate the operating cash flows of the project

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Reference no: EM132543460

Laurel's Lawn Care Ltd., has a new mower line that can generate revenues of $159,000 per year. Direct production costs are $53,000, and the fixed costs of maintaining the lawn mower factory are $21,500 a year. The factory originally cost $1.06 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 25%. (Enter your answer in dollars not in millions.)

Reference no: EM132543460

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Calculate the operating cash flows of the project

Reference no: EM132543460

Reference no: EM132543460

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