Calculate operating cash flows of project

Assignment Help Financial Management

Reference no: EM131580769

Laurel’s Lawn Care, Ltd., has a new mower line that can generate revenues of $132,000 per year. Direct production costs are $44,000, and the fixed costs of maintaining the lawn mower factory are $17,000 a year. The factory originally cost $1.1 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 40%.

WHAT IS OPERATING CASH FLOWS?

Reference no: EM131580769

Questions Cloud

Does sinking fund provision in bond contract : Does a sinking fund provision in a bond contract make the bond safer or more risky?

What is equivalent annual savings : Gluon Inc. is considering purchase of new high pressure glueball. What is equivalent annual savings from purchase if Gluon uses straight-line depreciation?

Trade surplus reflected in country balance of payment : How is a trade surplus reflected in country's balance of payment?

Maximum potential loss and max possible gain on that spread : What is Maximum potential loss and Max possible gain on that spread?

Calculate operating cash flows of project : Calculate the operating cash flows of the project if the firm’s tax bracket is 40%.

The projected cash flow for the next year : The projected cash flow for the next year for Minesuah Inc., is $175,000, and FCF is expected to grow at a constant rate of 5%.

What is the firm required rate of return : What is the firm’s required rate of return?

Discuss management of short-term assets : Discuss Management of Short-Term Assets, development of the cash budget, cash management techniques, acceleration of receipts, and disbursement control.

What is the bond price : Haswell Enterprises’ bonds have a 10-year maturity, What is the bond’s price?

User Account

All Pages