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Olinick Corporation is considering a project that would require an investment of $364,000 and would last for 8 years. The incremental annual revenues and expenses
Olinick Corporation is considering a project that would require an investment of $364,000 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.)
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Olinick Corporation is considering a project that would require an investment of $364,000 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.): Sales Variable expenses Contribution margin Fixed expenses: Salaries $240,000 24,000 216,000 Rents Depreciation Total fixed expenses Net operating income 42,000 55,000 50,000 147,000 $ 69,000 The scrap value of the project's assets at the end of the project would be $32,000. 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 $32,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.) Multiple Choice O 3.8 years o 3.1 years 1 years O 2.7 years o 5.3 years
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