Laurels lawn care ltd has a new mower line that can

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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 included in an asset class with a CCA rate of 5 percent. Evaluate the operating cash flows of the project for the next 6 years id the firm's tax bracket is 35 percent.

Reference no: EM13364015

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