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A local restaurant wants to implement Delivery Service to improve sales and operating profits. To do so, they will need to make some modifications to
A local restaurant wants to implement Delivery Service to improve sales and operating profits. To do so, they will need to make some modifications to their kitchen and dining area totaling $250,000. Once complete, they expect to generate additional net cash flows of $75,000 annually for the next five years. The required rate of return is 12%. a. Compute the Payback Period (1 pt) b. Calculate and compute the Discounted Payback Period. (3 pts) c. Using Payback as your criteria, would you do the project? Why? (1 pt) d. Would you do the project using Discounted Payback as your criteria? Why? (1 pt)
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