Management at the Daily Grind wants to install an espresso bar in its restaurant that Costs $100,000
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Question:
Management at the Daily Grind wants to install an espresso bar in its restaurant that Costs $100,000 at start. It has two options available for that investment.
Option AOption B
Year 1 cash inflow$60,000$60,000
Year 2 cash inflow$40,000$35,000
Year 14-10 cash inflows$0$25,000
Which option Daily Grind should select based upon the shortest payback period? Show necessary calculations.
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