What is the financial break-even point for the project

Assignment Help Finance Basics

Reference no: EM13260007

L.J.'s Toys Inc. just purchased a $390,000 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 $25. The variable cost per toy is $11, and the firm incurs fixed costs of $280,000 each year. The corporate tax rate for the company is 34 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 final answer to nearest whole number.

Reference no: EM13260007

Questions Cloud

What happens to the value of a perpetuity : What happens to the value of a perpetuity when interest rates increase? What happens when interest rates decrease. Explain why these changes occur.

Cause of failure among college students : A certain psychologist was looking for the cause of failure among college students. She took a group of former students who had flunked out and a group of students who had received good grades.

Calculate the npv of going directly to market : Calculate the NPV of going directly to market and the NPV of test marketing before going to market.

The relative speed between the spaceship and the asteroid : A spaceship and an asteroid are moving in the same direction away from Earth with speeds of 0.76c, What is the relative speed between the spaceship and the asteroid

What is the financial break-even point for the project : What is the financial break-even point for the project? (Do not round intermediate calculations and round your final answer to nearest whole number.

Explain how much heat was given off in this process : A 50.0 ml sample of benzene at 16.9 degrees C was cooled to its melting point, 5.5 degrees C and then frozen. How much heat was given off in this process

What is the proper length of the rocket : When traveling past an observer with a relative speed v, a rocket is measured to be 9.10m long. What is the proper length of the rocket

Find the average distance traveled by the pion : An elementary particle called a pi meson (or pion for short) has an average lifetime of 2.6×10?8s when at rest. Find the average distance traveled by the pion as measured by the same observer

Explain methanol must burned to raise the temperature : How many grams of methanol (CH3OH) must burned to raise the temperature of 1.00 kg H2O from 5.0 Celsius to 90.0 Celsius

User Account

All Pages