Laurel's Lawn Care, Ltd., has a new mower line that can generate revenues of $120,000 per year.

Operating Cash Flows. - 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 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 percent.

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