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lapo4ka [179]
3 years ago
14

Olinick Corporation is considering a project that would require an investment of $343,000 and would last for 8 years. The increm

ental cash inflows of the project per year at $107,000. The scrap value of the project's assets at the end of the project would be $23,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to:
Business
1 answer:
viva [34]3 years ago
3 0

Answer:

3.2 years

Explanation:

Calculation to determine what The payback period of the project is closest to:

Using this formula

Payback period = Investment required ÷ Annual net cash inflow

Let plug in the formula

Payback period= $343,000 ÷ $107,000 per year Payback period= 3.2 years

Therefore The payback period of the project is closest to:3.2 years

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Explanation:

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nikdorinn [45]

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4 0
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In its static budget, Hat Trick Manufacturing budgeted sales of 75,000 units at a price of $85 per unit. Its actual sales revenu
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