QUESTION 2 Ever-Fresh Landscaping bought a large-sized golf course mower for $20,000. With this new...
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QUESTION 2 Ever-Fresh Landscaping bought a large-sized golf course mower for $20,000. With this new machine, the company was able to increase its business, raising its annual revenue from $250,000 to $350,000 each year. Operating costs went up as well, however from $70,000 to $100,000 annually. The mower falls into the MACRS five year class for depreciation expense (20% for year 1) and the company's tax rate is 35%. Answer the following, in determining what is the net incremental operating cash flow in year 1 for the new lawn mower investment? Revenues 100,000.00 Operating Expenses Depreciation Expense Net Incremental Operating Cash Flow
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