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Laurels Lawn Care Ltd., has a new mower line that can generate revenues of $126.000 per year. Direct production costs are $4URGENTT

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Answer #1

OCF = (revenues-prod cost-fixed cost-factory cost/life)*(1-tax rate)+factory cost/life

=(126000-42000-16000-1050000/25)*(1-0.25)+1050000/25

=

61500
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URGENTT Laurel's Lawn Care Ltd., has a new mower line that can generate revenues of $126.000...
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