Roger Is Considering Adding Toys to His General Store

question 60

Multiple Choice

Roger is considering adding toys to his general store. He estimates that the cost of inventory will be $6,400. The remodeling expenses and shelving costs are estimated at $2,100. Toy sales are expected to produce net cash inflows of $1,400, $2,300, $3,100, and $2,000 over the next four years, respectively. Should Roger add toys to his store if he assigns a three-year payback period to this project? Why or why not?

• A) No; The payback period is 3.55 years.
• B) No; The payback period is 3.85 years.
• C) Yes; The payback period is 2.55 years.
• D) Yes; The payback period is 2.87 years.
• E) Yes; The payback period is 3.13 years.

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Definitions:

Aggression

Behavior intended to harm or intimidate others, which can be physical, verbal, or psychological.

Delinquency

Typically refers to minor criminal behavior, often by young people, or a failure to follow laws and regulations.

Bulimia Nervosa

An eating disorder that involves cycles of binge eating followed by self-induced vomiting.

Binge Eats

Episodes of uncontrollable eating, often characterized by consuming large quantities of food in a short period of time.