Homework Answers
The formula to calculate payback period is
Initital Investment/ Net annual cash flow
The initial investment is $210000
Annual cash flow is $68,000
Hence Payback period= 210000/68000
=>3.08
The correct answer is option C
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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...
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pls help Coyne Corporation is evaluating O p portunity. This project would require an investment of...
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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...
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Coyne Corporation is evaluating O p portunity. This project would require an investment of $35.000 D o life of the equipment is 4 years. The new project is expected to generate additional net casinows of $18.000 per year for each of the four y n The equipment will have a residual wale wt the end of its we $3000. The Coyne's required to retums 10% The present value of this project is m ) k the icon to...
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