Czaplinski corporation is considering a project that would

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Czaplinski Corporation is considering a project that would require an investment of $373,000 and would last for 6 years. The incremental annual revenues and expenses generated by the project during those 6 years would be as follows:

Sales	$125,000
Variable expenses	16,500
Contribution margin	108,500
Fixed expenses:
Salaries	15,500
Rents	12,000
Depreciation	47,000
Total fixed expenses	74,500
Net operating income	$34,000

The scrap value of the project's assets at the end of the project would be $24,000.The payback period of the project is closest to:

	5.2 years
	10.1 years
	11.0 years
	4.6 years

Reference no: EM13583509

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