Leo Is Considering Adding a Deli to His General Store

question 62

Multiple Choice

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.Should he add the deli?

• A)Yes;because the payback period is 3.19 years
• B)Yes;because the payback period is 2.82 years
• C)No;because the project never pays back
• D)No;because the payback period is 2.82 years
• E)No;because the payback period is 3.19 years

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Definitions:

Fidelity

The degree of accuracy and integrity with which a study, reproduction, or representation reflects the original subject or value.

Justice

The ethical principle concerned with fairness, equity, and impartiality in the allocation of resources and treatment of individuals.

Nonmaleficence

A principle in bioethics stating that one should not cause harm to others. This principle is crucial in healthcare decision-making.

Autonomy

The capacity and right of individuals to make their own choices and decisions, often highlighted in ethical discussions and personal development.