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Ayden's Toys, Incorporated, just purchased a $525,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 8-year economic life. Each toy sells for $29. The variable cost per toy is $12 and the firm incurs fixed costs of $385,000 per year. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 11 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.)

Ayden's Toys, Incorporated, just purchased a $525,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 8-year economic life. Each toy sells for $29. The variable cost per toy is $12 and the firm incurs fixed costs of $385,000 per year. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 11 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.)

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Ayden's Toys, Incorporated, just purchased a $525,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 8-year economic life. Each toy sells for $29. The variable cost per toy is $12 and the firm incurs fixed costs of $385,000 per year. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 11 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.) Financial break-even point units
Transcribed Image Text:Ayden's Toys, Incorporated, just purchased a $525,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 8-year economic life. Each toy sells for $29. The variable cost per toy is $12 and the firm incurs fixed costs of $385,000 per year. The corporate tax rate for the company is 23 percent. The appropriate discount rate is 11 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.) Financial break-even point units
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