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Darren Mack owns the Gas n' Go convenience store and gas station. Afler hearing a markesing lecture, he realizes that it might be possible to

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Darren Mack owns the "Gas n' Go" convenience store and gas station. Afler hearing a markesing lecture, he realizes that it might be possible to draw more customers to his high-margin convenience store by seling his gasoline at a lower price. However, the "Gas n ' G ' is unable to gualify for volume discounts on its gasoline purchases, and theresore cannot sel gasoline for profit if the price is lowered. Each new purnp will cost $110,000 to instalt, but will increase customer traffic in the store by 12,000 customers per year. Also, because the "Gas n ' Go' would be telting its gasoline st no profit, Darren plans on increasing the profit margin on convenience store tems incrementally over the next five years. Assume a discount rate of 8 percent The projected corrvenience store sales pet cuatomer and the projected profla margin for the next five years are given in the table below. a. What is the NFV of the next five years of cash flows if Darron had four new pumps instated? NPV =5 (Enter your respanse rounded to two decimal places )

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