Shanes toys inc just purchased a 528000 machine to produce


Shane's Toys, Inc., just purchased a $528,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its six-year economic life. Each toy sells for $27. The variable cost per toy is $12, and the firm incurs fixed costs of $290,000 each year. The corporate tax rate for the company is 35 percent. The appropriate discount rate is 11 percent. What is the financial break-even point point for the project?

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Financial Management: Shanes toys inc just purchased a 528000 machine to produce
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