Top Posters
Since Sunday
w
3
w
3
e
3
3
r
3
b
2
M
2
V
2
f
2
c
2
c
2
K
2
Home Q & A Board Other Fields Homework Help Business Accounting
New Topic  
Zergnet Zergnet
wrote...
Go to Answer
Posts: 139
Rep: 0 0
A year ago

Jarvey Corporation is studying a project that would have a ten-year life and would require a $450,000 investment in equipment which has no salvage value. The project would provide net operating income each year as follows for the life of the project (Ignore income taxes.):

Sales$ 500,000
Less cash variable expenses200,000
Contribution margin300,000
Less fixed expenses:
Fixed cash expenses$ 150,000
Depreciation expenses45,000195,000
Net operating income$ 105,000

The company's required rate of return is 12%. The payback period for this project is closest to:



▸ 3 years

▸ 2 years

▸ 4.28 years

▸ 9 years
Textbook 
Introduction to Managerial Accounting: Brewer Edition: 9e

Introduction to Managerial Accounting: Brewer Edition: 9e


Edition: 9th
Authors:
Read 55 times
1 Reply
Replies
Answer verified by a subject expert
rick32rick32
wrote...
#1
Posts: 153
Rep: 0 0
A year ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

Zergnet Author
wrote...

A year ago
this is exactly what I needed
linlinlin
wrote...

Yesterday
You make an excellent tutor!
mikeh209
wrote...

2 hours ago
Good timing, thanks!
New Topic      
Quick Reply
Explore
Post your homework questions and get free online help from our incredible volunteers
  509 People Browsing
Start New Topic Take the Tour CoursesNew Study Tools Topics Trending Browse by Textbook
Live Chat
Related Images
  
 202
  
 964
  
 12369
Your Opinion
How often do you eat-out per week?
Votes: 81
Previous poll results: Do you trust social media networks with protecting your privacy?