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Darren Mack owns the Gas n ' Go convenience store and gas station. After hearing a marketing locture, he realizos that it might be possble

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Darren Mack owns the "Gas n ' Go" convenience store and gas station. After hearing a marketing locture, he realizos that it might be possble to draw more customers to his high-margin comveniench store by seling his gasoline at a lower price. However, the "Gas n' Go' ha unable to qualify for volume discounts on its gasoline purchases, and therefore cannot soll goscine far prodt if the pice is lowored. Each now pump will cost $95,000 to install, but well increase customer traffic in the slore by 14,000 customers per year, Aso, bocouso the "Gas n' Go" would be seling tr gasoline at no profit Derei plans on increasing the profit margin on convenience store liems incrementaly over the neod five years. Assume a discount rate of 7 percert. The projected convenience siore sales per cuitomer and the projected profit margin for the next five years are given in the table below. a. What is the NPV of the next five yoars of cash fiows if Darten had four new purps installed? NPV=$ (Enter your response rounded to two decimal places.) b. If Darren required a pryback period of four years, thould he go shead with the instaliation of the new pumps? The project undertaken since the payback period is years. (Enter your response rounded to hro deaimal plices.)

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