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Olinick Corporation is considering a project that would require an investment of $329,000 and would last for 8 years. The incremental annual revenues and expenses
Olinick Corporation is considering a project that would require an investment of $329,000 and would last for 8 years. The incremental annual revenues and expenses generated by the project during those 8 years would be as follows (Ignore income taxes.): $215,000 28,000 187,000 Sales Variable expenses Contribution margin Fixed expenses Salaries Rents Depreciation Total fixed expenses Net operating income 35,000 48,000 43,000 126,000 $ 61,000 The scrap value of the project's assets at the end of the project would be $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.) The scrap value of the project's assets at the end of the project would be $25,000. The payback period of the project is closest to: (Round your answer to 1 decimal place.) Multiple Choice 32 years 54 years 43 years 28 years
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