Which option daily grind should select

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Management at the Daily Grind wants to install an espresso bar in its restaurant that Costs $100,000 at start. It has two options available for that investment.

                                    Option A                       Option B

Year 1 cash inflow              $60,000                    $60,000

Year 2 cash inflow              $40,000                    $35,000

Year 14-10 cash inflows           $0                        $25,000

Question 1: Which option Daily Grind should select based upon the shortest payback period? Show necessary calculations.

Reference no: EM132558929

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