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Oceanview Manufacturing is considering an investment that would require an initial net investment of 5660.000. The following revenues/expenses relate exclusively to the investment Sales $370,000

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Oceanview Manufacturing is considering an investment that would require an initial net investment of 5660.000. The following revenues/expenses relate exclusively to the investment Sales $370,000 Variable expenses $20.000 Contribution margin $350,000 Fixed expenses Salaries expense $35,000 Rent expense $20,000 Depreciation expense $40.000 Total fixed expenses $95.000 Operating income $160,000 Tha invaetmant ad have a real wala nfe non at the end of the 19 waar fullt Whole tha nhar norint in the mement? I then whark to OA. 3.00 years and reject it. OB. 4 125 years and reject it OC. 600 years and invest OD 3.00 years and invest Total Tixed expenses 395,000 Operating income $160,000 The investment will have a residual value of $50,000 at the end of its 12 year useful life. What is the payback period for this investment? If they use payback to make the decision and they require a payback of 2 years would they investor reject the investment

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