Question: Please help and demonstrate how to solve. Thank you. L.J.'s Toys Inc. just purchased a $280,000 machine to produce toy cars. The machine will be

Please help and demonstrate how to solve. Thank you.

L.J.'s Toys Inc. just purchased a $280,000 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 $21. The variable operating cost per toy is $7, and the annual fixed operating cost is $344,000. The corporate tax rate for the company is 38 percent. The appropriate discount rate is 10 percent.

What is the financial (present value) break-even point for the project? (Do not round numbers during calculations)

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