Ljrsquos toys inc just purchased a 272000 machine to, Ask an Expert

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L.J.’s Toys Inc. just purchased a $272,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its four-year economic life. Each toy sells for $23. The variable cost per toy is $10, and the firm incurs fixed costs of $270,000 each year. The corporate tax rate for the company is 40 percent. The appropriate discount rate is 10 percent. What is the financial break-even point for the project?

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Financial Management, Finance

Category:- Financial Management
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