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17. Oceanview Manufacturing is considering an investment that would require an initial net jinvestment of $625,000. The following revenues/expenses relate exclusively to the investment: $360,000
17. Oceanview Manufacturing is considering an investment that would require an initial net jinvestment of $625,000. The following revenues/expenses relate exclusively to the investment: $360,000 $30,000 $330,000 Sales Variable expenses Contribution margin Fixed expenses Salaries expense Rent expense Depreciation expense Total fixed expenses Operating income $24,000 $50,000 $50,000 $124,000 $206,000 The investment will have a residual value of $40,000 at the end of its 18 year useful life. The payback period for this investment is ? If the desired payback is 3 years would they iaccept or reject this investment? A) 2.70 years and accept. B) 1.92 years and reject C) 3.35 years and reject D) 2.18 years and accept
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