Firm three year payback requirement

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Reference no: EM131461837

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?

Reference no: EM131461837

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