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DAN is considering adding toys to his general store. He estimates that the cost of inventory will be $4,200. Toy sales are expected to produce
DAN is considering adding toys to his general store. He estimates that the cost of inventory will be $4,200. Toy sales are expected to produce net cash inflows of $1,200, $1,500, $1,000, and $1,050 over the next four years, respectively. Should Dan add toys to his store if he assigns a three-year payback period to this project? What is the payback period for Dan?
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