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Olinick Corporation is considering a project that would require an investment of $284,000 and would...

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Accounting

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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

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