Leo Is Considering Adding a Deli to His General Store

question 63

Multiple Choice

Leo is considering adding a deli to his general store.The remodeling expenses and shelving costs are estimated at $2,500.Deli sales are expected to produce net cash inflows of $1,300,$1,600,$1,700,and $1,750 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 1.75 years
• B)Yes;because the payback period is 2.25 years
• C)Yes;because the payback period is 1.90 years
• D)No;because the payback period is 1.75 years
• E)No;because the payback period is 2.25 years

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Definitions:

Public Health Regulations

Laws and policies designed to protect and improve the health of the public, including sanitation, vaccination, and disease control measures.

Refuse Removal

The collection, transportation, and disposal or management of waste materials.

Air And Water Pollution

The contamination of the planet's air and water bodies with harmful or poisonous substances, leading to adverse effects on the environment and human health.

Urban Political Bosses

Influential leaders who control a political machine in a city, often using patronage and sometimes corrupt practices to maintain power and control over urban politics.