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Multiple Choice 3.2 years 4.1 years 2.6 years Olinick Corporation is considering a project...

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Accounting

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Multiple Choice

3.2 years

4.1 years

2.6 years

Olinick Corporation is considering a project that would require an investment of $374,000 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: $270,000 26,000 244,000 44,000 57,000 52,000 153,000 91,000 Salaries Rents Depreciation Total fixed expenses Net operating income The scrap value of the project's assets at the end of the project would be $34,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to

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