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Problem 5. Ayden's Toys, Incorporated, just purchased a $495,000 machine to produce toy cars. The...

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Problem 5. Ayden's Toys, Incorporated, just purchased a $495,000 machine to produce toy cars. The machine will be fully depreciated by the straight-line method over its 7 -year economic life. Each toy sells for $23. The variable cost per toy is $5 and the firm incurs fixed costs of $355,000 per year. The corporate tax rate for the company is 22 percent. The appropriate discount rate is 10 percent

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