Jarvey corporation 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 (ignore income taxes.): sales $ 500,000 less cash variable expenses 200,000 contribution margin 300,000 less fixed expenses: fixed cash 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?

3 years

Explanation:

Since the income tax is ignored, so the operating cash flows would be

= EBIT + Depreciation - Income tax expense

= $105,000 + $45,000 - $0

= $150,000

The operating cash flows are same for ten years

And, the initial investment is $450,000

So, the payback period would be

= Initial investment ÷ Net cash flows

= $450,000 ÷ $150,000

= 3 years

if you do not file your taxes you will not have a job, and you credit rate will go down.

it's actually a very difficult task, due to not many people can make 2 million dollars in 2 years. besides that, to the not-so-realistic ideas, you can create a business. it could be practically anything, but make it into a business that isn't that known yet, you get me? also, lets not forget about stock market. that's where all the good stuff happens. use investments at the beginning and begin to raise up your business or whatever you're going to do. as this is a very non-realistic idea, it's still worth the shot!