Olinick Corporation Is Considering a Project That Would Require an Investment

question 9

Multiple Choice

Olinick Corporation is considering a project that would require an investment of $329,000 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 $25,000. The cash inflows occur evenly throughout the year. The payback period of the project is closest to: (Round your answer to 1 decimal place.)

• A) 3.2 years
• B) 5.4 years
• C) 4.3 years
• D) 2.8 years

Determine the contribution margin ratio and its significance in break-even analysis.

Use the operating leverage to estimate the effect of sales changes on net operating income.

Understand the basic concepts and application of the high-low method in cost analysis.

Comprehend the principles of scattergraph method and the role of activity as an independent variable in cost behavior analysis.

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A clear and straightforward way of communicating that avoids complex vocabulary or concepts.

Nonverbal Communication

The transmission of messages or signals through a non-linguistic means, such as body language, facial expressions, and gestures.

Grimacing

A facial expression often associated with pain, disgust, or discomfort, characterized by a contortion of the face.

"I Feel Fine"

A common expression indicating the speaker perceives themselves to be in good health or without problems.