Olinick Corporation is considering a project that would require an investment of $284,000 and would...
90.2K
Verified Solution
Link Copied!
Question
Accounting
Olinick Corporation is considering a project that would require an investment of $284,000 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: $239,000 23,000 216,000 Salaries Rents Depreciation 26,000 39,000 34,000 99,000 $117,000 Total fixed expenses Net operating income The scrap value of the project's assets at the end of the project would be $16,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: Multiple Choice 1.9 years 2.4 years 2.2 years .8 years
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
