question archive 1) Laurel’s Lawn Care Ltd

1) Laurel’s Lawn Care Ltd

Subject:AccountingPrice: Bought3

1) Laurel’s Lawn Care Ltd., has a new mower line that can generate revenues of $129,000 per year. Direct production costs are $43,000, and the fixed costs of maintaining the lawn mower factory are $16,500 a year. The factory originally cost $0.86 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 millions

Operating cash flow is _________


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