Computing operating cash flow for project

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Reference no: EM1370364

Operating Cash Flows. Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $120,000 per year. Direct production costs are $40,000 and the fixed costs of maintaining the lawn mower factory are $15,000 a year. The factory originally cost $1 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
percent.

How is this done?

Reference no: EM1370364

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