Leo is considering adding a deli to his general store. The remodeling expenses and shelving costs are estimated at $2,500. Deli sales are expected to produce net cash inflows of $1,300, $1,600, $1,700, and $1,750 for Years 1 to 4, respectively. Leo has a firm 3-year payback requirement. Should he add the deli?

Yes; because the payback period is 1.75 years

Yes; because the payback period is 2.25 years

Yes; because the payback period is 1.90 years

No; because the payback period is 1.75 years

No; because the payback period is 2.25 years