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Sales Variable expenses Contribution margin. Fixed expenses. Salaries. Rents. Depreciation. Total fixed expenses Net operating income. $224,000 22,000 202,000 OA. 2.0 OB. 19 OC. 2.6
Sales Variable expenses Contribution margin. Fixed expenses. Salaries. Rents. Depreciation. Total fixed expenses Net operating income. $224,000 22,000 202,000 OA. 2.0 OB. 19 OC. 2.6 OD. 2.5 25,000 38,000 33,000 96,000 $106.000 13. (Ignore income taxes in this problem.) Neighbors Corporation is considering a project that would require an investment of $279,000 and would last for eight years. The incremental annual revenues and expenses generated by the project during those eight years would be as shown. The scrap value of the project's assets at the end of the project would be $15,000. The cash inflows occur evenly throughout the year. The payback period for this project is closest to years.
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