Calculate the degree of operating leverage.( rief Exercise 7-23 Impact of egree of Operating Leverac ead-First Company had pl- 5. Geary Company is considerin40,000 per year in able cost is able selling cexpe$110,000. The investmen e investment would return $40,000 per year in e years. Geary requires a minimum rate of return d selling and adr ee of operati each of three of 10%. uired: hat is the payback period for the investment? , Using the Present Value of an Annuity of $1 table, calculate the net present value of the investment. A, W , The internal rate of return is greater than % and less than