Computing operating cash flow for project

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

Questions Cloud

Lodging facilities and management paper : Prepare a paper in which you describe different types of lodging facilities and select two different types of lodging facilities (e.g., luxury hotel, resort, cruise line).

Explain what are the recommendations for unilever : Explain What are the recommendations for Unilever that you can provide and be specific and provide detail information and supportive analysis?

Define the three lags discussed in monetary policy : The economy is operating below its potential output, what kind of gap exists. Determine what kinds of fiscal or monetary policies might you use to close the gap.

Explain code review methodology-walkthrough : As the quality assurance manager, which code review methodology-walkthrough or inspection-would you recommend? Justify your answer.

Computing operating cash flow for project : 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.

Use the nadler-tushman congruence model : Evaluate the quality of the fit between outputs and how do the various outputs affect each other

Describe how and why fraud invalidates a contract : Describe how and why fraud invalidates a contract and Include in your treatment of this subject examples of undue influence and duress that can arise in the business context

Write java program which declares the array alpha : Write the Java program which declares the array alpha of 50 elements. Initialize array so that first 25 elements are equal to square of the index variable and the last 25 elements

Manipulate operations to the extent of maximizing profits : Handheld Corporation is a moderately successful company. In 2006, they had a profitability of twenty-two percent.

User Account

All Pages