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convenience store owner is contemplating putting a large neon sign over his store. It would cost , but is expected to bring an additional of
convenience store owner is contemplating putting a large neon sign over his store. It would cost , but is expected to bring an additional of profit to the store 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%? Question content area bottom Part 1 A. Yes, since the cash flows after two years are greater than the initial investment. B. Yes, since it will pay back its initial investment in two years. C. Yes, since the NPV is positive. D. Yes, since the value of the cash flows into the store, in present dollars, are greater than the initial
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