Princess Unikitty 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, $3,200, and $3,400 over the next four years, respectively. Should Princess Unikitty add toys to her store if she assigns a three-year payback period to this project? Why or why not?

No; The payback period is 2.93 years.

No; The payback period is 3.26 years.

Yes; The payback period is 2.93 years.

Yes; The payback period is 3.01 years.

Yes; The payback period is 3.26 years.

Please show all work!