Alicia is considering adding toys to her gift shop. She estimates the cost of new inventory will be $9,500 and remodeling expenses will be $1,300. Toy sales are expected to produce net cash inflows of $3,300, $4,900, $4,400, and $4,100 over the next four years, respectively. Should Alicia add toys to her store if she assigns a three-year payback period to this project? Why or why not?

Yes; The payback period is 2.59 years.

Yes; The payback period is 3.01 years.

No; The payback period is 3.59 years.

Yes; The payback period is 2.93 years.

No; The payback period is 2.93 years.