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Thank you! Oceanview Manufacturing is considering an investment that would require an intial net investment of $660,000. The following revenues/expenses relate exdlusively to the investment
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Oceanview Manufacturing is considering an investment that would require an intial net investment of $660,000. The following revenues/expenses relate exdlusively to the investment Sales Variable expenses Contribution margin Fixed expenses Salaries expense Rent expense Depreciation expense Total foced expenses Operating income S370,000 $20,000 S350,000 S35,000 S20,000 $40,000 S95,000 S160,000 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 invest or O A. 3.00 years and reject it O B. 3.00 years and invest O C. 6.00 years and invest O D. 4.125 years and reject itStep by Step Solution
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