The management of L Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to (Ignore income taxes.):
Firstly we have to calculate annual cash Inflow
= net operating income + depreciation
= $ 108000 + 29000
= $ 137000
Pay back period = investment ÷ annual cash Inflow
= 228000 ÷ 137000
= 1.66 years
Thus the correct answer is 1.66 years
The management of L Corporation is considering a project that would require an investment of $228,000...
13.
The management of Lanzilotta Corporation is considering a project that would require an investment of $228,000 and would last for 6 years. The annual net operating income from the project would be $108,000, which includes depreciation of $29,000. 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 of the project is closest to (Ignore income taxes.): (Round your answer to 1...
Olinick Corporation is considering a project that would require an investment of $338,000 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 $ 269,000 Variable expenses 20,000 Contribution margin 249,000 Fixed expenses: Salaries 28,000 Rents 41,000 Depreciation 36,000 Total fixed expenses 105,000 Net operating income $ 144,000 The scrap value of the project's assets at the end of the project would...
Olinick Corporation is considering a project that would require an investment of $329,000 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 $ 215,000 Variable expenses 28,000 Contribution margin 187,000 Fixed expenses: Salaries 35,000 Rents 48,000 Depreciation 43,000 Total fixed expenses 126,000 Net operating income $ 61,000 The scrap value of the project's assets at the end of the project would...
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....
Olinick Corporation is considering a project that would require an investment of $329,000 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.): $215,000 28,000 187,000 Sales Variable expenses Contribution margin Fixed expenses Salaries Rents Depreciation Total fixed expenses Net operating income 35,000 48,000 43,000 126,000 $ 61,000 The scrap value of the project's assets at the end of the project would be...
Olinick Corporation is considering a project that would require an investment of $379,000 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.): $240,000 27,000 213,000 Sales Variable expenses Contribution margin Fixed expenses: Salaries Rents Depreciation Total fixed expenses Net operating income 45,000 58,000 53,000 156,000 $ 57,000 The scrap value of the project's assets at the end of the project would be...
The management of Truelove Corporation is considering a project that would require an initial investment of $336,990 and would last for 7 years. The annual net operating income from the project would be $28.800, including depreciation of $44.170. At the end of the project, the scrap value of the project's assets would be $27,800. (Ignore income taxes.) Required: Determine the payback period of the project. (Round your answer to 2 decimal places.) Payback period < Prey 8 of 14 Next...
The management of Leitheiser Corporation is considering a project that would require an initial investment of $51,000. No other cash outflows would be required. The present value of the cash inflows would be $57,630. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 1.13 To oo
The management of Leitheiser Corporation is considering a project that would require an initial investment of $41,000. No other cash outflows would be required. The present value of the cash inflows would be $52,580. The profitability index of the project is closest to (Ignore income taxes.): Multiple Choice 0.72 1.28 0.28 0.22
2.
The management of Leitheiser Corporation is considering a project that would require an initial investment of $44,000. No other cash outflows would be required. The present value of the cash inflows would be $59,330. The profitability index of the project is closest to (lgnore income taxes.) A project requires an initial investment of $63,000 and has a project profitability index of 0.332. The present value of the future cash inflows from this investment is: Trovato Corporation is considering a...