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Jonian Corporation is considering a project that would require an initial investment of 5650,000 and would last for 10 years The incremental annual revenues and expenses for each of the years would be as follows Sales Variable Costs Contribution Margin Fixed Expenses Salaries Rents $241,000 3.28.000 $143.000 $ 45,000 $ 25,000 $65.000 $135.000 Depreciation 1 Total Fixed Expenses Net Operating Income $ 8.000. At the end of the project, the scrap value of the project's assets would be $12,000. Required: Determine the payback period of the project. Show your work!

Jonian Corporation is considering a project that would require an initial investment of 5650,000 and would last for 10 years The incremental annual revenues and expenses for each of the years would be as follows Sales Variable Costs Contribution Margin Fixed Expenses Salaries Rents $241,000 3.28.000 $143.000 $ 45,000 $ 25,000 $65.000 $135.000 Depreciation 1 Total Fixed Expenses Net Operating Income $ 8.000. At the end of the project, the scrap value of the project's assets would be $12,000. Required: Determine the payback period of the project. Show your work!

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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lonian Corporation is considering a project that would require an initial investment of $650,000 and would last for 10 years The incremental annual revenues and expenses for each of the years would be as follows Sales Variable Costs Contribution Margin Fixed Expenses Salaries Rents $241,000 3.28.000 $143,000 $ 45,000 $ 25,000 Depreciation $65.000 Total Fixed Expenses $135.000 Net Operating Income $8,000 Required: At the end of the project, the scrap value of the project's assets would be $12,000 Determine the payback period of the project. Show your work!
Transcribed Image Text:lonian Corporation is considering a project that would require an initial investment of $650,000 and would last for 10 years The incremental annual revenues and expenses for each of the years would be as follows Sales Variable Costs Contribution Margin Fixed Expenses Salaries Rents $241,000 3.28.000 $143,000 $ 45,000 $ 25,000 Depreciation $65.000 Total Fixed Expenses $135.000 Net Operating Income $8,000 Required: At the end of the project, the scrap value of the project's assets would be $12,000 Determine the payback period of the project. Show your work!
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