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Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $8,000. The remodeling expenses and shelving costs
Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $8,000. The remodeling expenses and shelving costs are estimated at $2,700. Toy sales are expected to produce net cash inflows of $3,600, $3,100, $4,400, and $4,400 over the next four years, respectively. What is the payback period? (Please round to three decimal places). Should Susan add toys to her store if she assigns a three-year payback period to this project? Why or why not?
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