Olinick Corporation Is Considering a Project That Would Require an Investment

question 327

Multiple Choice

Olinick Corporation is considering a project that would require an investment of $343,000 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.) : 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:

• A) 3.0 years
• B) 5.1 years
• C) 3.2 years
• D) 4.8 years

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