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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Definitions:

Evolutionary Perspective

The theory that seeks to identify behavior that is a result of our genetic inheritance from our ancestors.

Mate Selection

The process of choosing a partner for reproduction and companionship, influenced by biological, psychological, and social factors.

Fatuous Love

A type of love characterized by commitment based on passion without the intimacy component, often considered to be shallow.

Intimacy

The feeling of being emotionally close to and connected with another individual, often involving a sense of shared understanding and affection.