Question: Please provide a breakdown to help me better understand. 5. Mountaintop Manufacturing is considering an investment that would require an initial net investment of $600,000.

Please provide a breakdown to help me better understand.

Please provide a breakdown to help me better understand. 5. Mountaintop Manufacturing

5. Mountaintop Manufacturing is considering an investment that would require an initial net investment of $600,000. The following revenues/expenses relate exclusively to the investment: Sales $360,000 Variable expenses $10,000 Contribution margin $350.000 Fixed expenses Salaries expense $35,000 Rent expense $50,000 Depreciation expense $50.000 Total fixed expenses $135.000 Operating income $215.000 The investment will have a residual value of $10,000 at the end of its 13 - year useful life. What is the payback period for this investment? A. 2.26 years B. 1.67 years Xc. 2.79 years D. 3.64 years

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