Question
Lakia is considering adding toys to her gift shop. She estimates that the cost of inventory will be $7,500. The remodeling expenses and shelving costs
Lakia is considering adding toys to her gift shop. She estimates that the cost of inventory will be $7,500. The remodeling expenses and shelving costs are estimated at $1,800. Toy sales are expected to produce net cash inflows of $2,300, $2,900, $3,500, and $4,600 over the next four years, respectively. Should Lakia add toys to her store if she assigns a 3 year payback period to this project? Why or why not? Group of answer choices Yes; the payback period is 2.91 years. No; the payback period is 3.60 years. Yes; the payback period is 3.13 years. Yes; the payback period is 3.60 years. No; the payback period is 3.13 years.
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