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Laurels Lawn Care Ltd., has a new mower line that can generate revenues of $174,000 per year. Direct production costs are $5

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particulars amount $

revenue 174000

variable cost 58000

fixed cost    24000

depreciation ( 1.45 m/ 25years) 58000   

pretax profit 34000

taxes ( 25%)   8500

net income 25500

depreciation ( add) 58000

operating cash flow 83500

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