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What is the payback period in years

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Question - Leo is considering adding a deli to his general store. The remodelling expenses and shelving costs are estimated at $27,500. Deli sales are expected to produce net cash inflows of $7,300, $8,600, $9,700, and $9,750 for Years 1 to 4, respectively. Leo has a firm 3-year payback requirement. What is the payback period in years and should he add the deli or not?

Reference no: EM132792116

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