. (Ignore income taxes in this problem.) Czaplinski Corporation is considering a project that would require an investment of $973,000 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 | $257,000 |
| Variable expenses |
34,500 |
| Contribution margin |
222,500 |
| Fixed expenses: | |
| Salaries | 33,500 |
| Rents | 24,000 |
| Depreciation |
95,000 |
| Total fixed expenses |
152,500 |
| Net operating income |
$70,000 |
The scrap value of the project’s assets at the end of the project would be $48,000. The payback period of the project is closest to:
| 13.3 years | |
| 5.9 years | |
| 6.8 years | |
| 13.9 years
Please show me the work |