Leo Is Considering Adding a Deli to His General Store

question 49

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

---

Definitions:

Epithelial Cells

Cells that line the outer surfaces of organs and blood vessels, as well as the inside of hollow organs, functioning as a barrier and involved in absorption and secretion.

Jackson-Pratt (JP) Drain

A closed suction drain that is used in surgery to remove accumulated fluid from a patient's body, reducing the risk of infection and promoting healing.

Hemovac Drain

A closed suction medical device used postoperatively to remove excess blood, fluids, and air from a wound site, promoting healing.

Pulsatile Lavage

A medical cleaning process using a pulsed, pressurized fluid to remove debris and infection from wounds.