Please do not give solution in image format thanku Question 11Mediterranean Corporation is considering a project that would require an initial investment of $524,000 and would last for 5years. The incremental annual revenues and expenses for each of the years would be as follows:SalesVariable CostsContribution Margin-Fixed ExpensesSalariesRentsDepreciationTotal Fixed ExpensesNet Operating Income$235,000$ 81.000$154,000Required:$ 18,000$ 25,000$ 104.800$ 147,800$ 62,200At 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!

Payback period: Payback period is the length of time in which an investment reaches its break-even…

Mediterranean Corporation is considering a project that would require an initial investment of $524,000 and would last for 5 years. The incremental annual revenues and expenses for each of the years would be as follows: Salos Variable Costs Contribution Margin Fixed Expenses Salaries Rents Depreciation Total Fixed Expenses Net Operating Income $235,000 $ 8.1.000 $154,000 $ 18,000 $ 25,000 $ 104.800 $ 147,800 $ 62,200 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!

Mediterranean Corporation is considering a project that would require an initial investment of $524,000 and would last for 5 years. The incremental annual revenues and expenses for each of the years would be as follows: Salos Variable Costs Contribution Margin Fixed Expenses Salaries Rents Depreciation Total Fixed Expenses Net Operating Income $235,000 $ 8.1.000 $154,000 $ 18,000 $ 25,000 $ 104.800 $ 147,800 $ 62,200 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!

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter13: Capital Budgeting: Estimating Cash Flows And Analyzing Risk

Section: Chapter Questions

Problem 2P

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