Aydens Toys, Inc., purchased a $485,000 machine to produce toy cars. The machine will be fully depreciated
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Ayden’s Toys, Inc., purchased a $485,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its five-year economic life. Each toy sells for $19. The variable cost per toy is $6 and the firm incurs fixed costs of $310,000 per year. The corporate tax rate for the company is 24 percent. The appropriate discount rate is 12 percent. What is the financial break-even point for the project?
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Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
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