Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Help Save & Exit Submit Olinick Corporation is considering a project that would require an investment of $319,000 and would fast for 8 years. The

image text in transcribed
image text in transcribed
Help Save & Exit Submit Olinick Corporation is considering a project that would require an investment of $319,000 and would fast for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (ignore Income taxes.): $265,000 26 , 239,000 Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses Net operating income 33,000 46,000 41,000 120,000 $119,000 The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.) 20 years COS 27 years O 24 years 17 years

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Managerial Accounting

Authors: Ray H. Garrison, Alan Webb, Theresa Libby

12th Canadian Edition

1260193276, 978-1260193275

Students also viewed these Accounting questions

Question

Can knowledge workers and/or professionals be performance-managed?

Answered: 1 week ago

Question

Does a PMS enhance strategic integration within HRM?

Answered: 1 week ago