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L J.'s Toys Inc. just purchased a Rs. 200,000/ machine to product toy cars. The machine will be fully depreciated by the straight line method
L J.'s Toys Inc. just purchased a Rs. 200,000/ machine to product toy cars. The machine will be fully depreciated by the straight line method over its five year economic life. Each toy sells for Rs. 25 . The variable cost per toy is Rs. 5 and the firm incurs fixed cost of Rs. 350.000 each year. The corporate tax rate for the company is 25%. The appropriate discount rate is 12%. What is the financial break-even point for the project
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