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Olinick Corporation is consldering a project that would require an Investment of $354,000 and would last for 8 yoars. The Incremental annual revenues and expenses
Olinick Corporation is consldering a project that would require an Investment of $354,000 and would last for 8 yoars. 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 nargin Fixed expenses: $21e,888 22,800 188,800 Salaries Rents Depreciation 40,808 53,800 48,808 141,800 $ 47,8008 Total fixed expenses Net operating income The scrap value of the project's assets at the end of the project would be $30,000. The cash Inflows occur evenly throughout the year. The payback pertod of the project is closest to: 37 years 7.5 years 48 years 35 years
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