Olinick corporation is considering a project that would require an investment of $379,000 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.): sales $240,000 variable expenses 27,000 contribution margin 213,000 fixed expenses: salaries 45,000 rents 58,000 depreciation 53,000 total fixed expenses 156,000 net operating income $57,000 the scrap value of the project's assets at the end of the project would be $35,000. the cash inflows occur evenly throughout the year. the payback period of the project is closest to: . 6.6 yearsb. 3.4 yearsc. 4.6 yearsd. 3.3 years

b. 3.4 years

Explanation:

The formula to compute the payback period is shown below:

= Initial investment ÷ Net cash flow

where,  

Initial investment is $379,000

And, the net cash flow = annual net operating income + depreciation expenses

= $57,000 + $53,000

= $110,000

Now put these values to the above formula  

So, the value would equal to

= ($379,000) ÷ ($110,000)

= 3.4 years

d, conspicuous consumption is when you try to increase your wealth or social status (and in the case he's trying to create the perception of wealth considering he can't really afford it)

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds