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Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $ 8 , 0 0 0 .



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?


If a project costs $200 and the present value of its future cash flows is $240, what is the profitability index value of the project?



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