Maxwell estimates rental costs of $2,000 per month, utilities of $300 per month, a one-time investment in store design of $7,000 and recurring salary expenses of $5,000 per month. He expects this change to increase sales revenue to 8 times its current levels and reduce the seasonality of the sales. Operating online costs $8,000 per year in hosting and requires $250 per month in order fulfillment employee wages. Maxwell wants your calculations on this in addition to any qualitative items that need to be considered in the decision. Prepare a return on investment calculation and determine the payback period for this capital investment.

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The question is complete First we need to calculate the yearly cost of running a physical store and ... View the full answer