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LAUREL’S LAWN CARE, LTD., HAS A NEW MOWER LINE THAT CAN GENERATE

LAUREL’S LAWN CARE, LTD., HAS A NEW MOWER LINE THAT CAN GENERATE

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http://theperfecthomework.com/laurels-lawn-care-ltd-has-a-new-mower-line-that-can-generate-revenues-of-174-000-per-year-direct-production-costs-are-58-000-and-the-fixed-costs/

Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $174,000 per year. Direct production costs are $58,000, and the fixed costs of maintaining the lawn mower factory are $24,000 a year. The factory originally cost $1.45 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%. (Enter your answer in dollars not in millions.)


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