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Business, 31.12.2019 06:31 penelopegrace04

(ignore income taxes in this problem.) jarvey company 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:

sales . $500,000

less cash variable expenses . 200,000

contribution margin . 300,000

less fixed expenses:

fixedcash expenses .$150,000

depreciation expenses .45,000 . 195.000

net operating income $105,000

the company's required rate of return is 12%.

what is the payback period for this project?

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