What is the financial break-even point point for the project

Assignment Help Financial Management

Reference no: EM131495408

Shane's Toys, Inc., just purchased a $320,000 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 $282,000 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 point for the project?

Reference no: EM131495408

Questions Cloud

Target capital structure that consists : Axel Telecommunications has a target capital structure that consists of 45% debt and 55% equity. what will be its dividend payout ratio?

About the odd dividend policy : Maloney, Inc., has an odd dividend policy. If you require a return of 12 percent on the company’s stock, how much will you pay for a share today?

What is the yield to maturity and coupon rate : A bond with a par value of $1000 makes semiannual coupon payments of $38. What is its coupon rate? What is the yield to maturity?

What is cash flow from net working capital for year three. : What is the cash flow from net working capital for Year 3 of the project?

What is the financial break-even point point for the project : Shane's Toys, Inc., just purchased a $320,000 machine to produce toy cars. What is the financial break-even point point for the project?

Number of outstanding shares and the par value per share : How will the above stock split affect the number of authorized shares, the number of issued shares, the number of outstanding shares and the par value per share

Recover the costs of the landscaping : Determine the likely result if Clark sues Lee to recover the costs of the landscaping.

Decisions involved in the process of buying life insurance : Briefly outline the factors that you would consider in deciding the answer to each of the three basic decisions involved in the process of buying life insurance

The present value of each of your cousins debts : At the same interest rate, t years from now, your other cousin Jay borrows $1900. If the present value of each of your cousin's debts is the same, what is t?

User Account

All Pages