Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenue of 147,000 per year.
Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenue
of 147,000 per year. Direct production costs are $49,000, and the fixed costs of maintaining the lawn mower factory are $19, 500 a year. The factory originally cost $ 0.98 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 35%. Answer in dollars
I got this far with the problem and got stuck
147,000
49,000
19,500
-49,000_______
29, 500
Operating cash flow:$
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