A convenience store owner is contemplating putting a large neon sign over his store. It would cost $38,000 but is expected to bring an additional $17,500 of profit to the stoyre every year for five years. Would this project be worthwhile if evaluated using a payback period of two years or less and if the cost of capital is 10% ? Yes, since the cash flows after two years are greater than the initial investment. Yes, since it will pay back its initial investment in two years. No, since the value of the cash flows over the first two years are less than the initial investment. No, since the value of the cash flows into the store, in present dollars, are equal to the initial investment. You are considering adding a microbrewery onto one of your firm's existing restaurants. This will entail an increase in inventory of $8,700, an increase in accounts payables of $2,100, and an increase in property, plant, and equipment of $44,000. All other accounts will remain unchanged. The change in net working capital resulting from the addition of the microbrewery is: $10,800 $50,600 $6,600 $7,920