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Aydens Toys, Inc., just purchased a $480,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 7-year
Aydens Toys, Inc., just purchased a $480,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 7-year economic life. Each toy sells for $20. The variable cost per toy is $7 and the firm incurs fixed costs of $340,000 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? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
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