Susan is considering adding toys to her gift shop. She estimates that the cost of inventory will be $$8,000.$ The remodeling expenses and shelving costs are estimated at $$2,700.$ Toy sales are expected to produce net cash inflows of $$3,600,$$$3,100,$$$4,400,$ and $$4,400$ over the next four years, respectively. What is the payback period? $($Please round to three decimal places$).$ Should Susan add toys to her store if she assigns a three$-$year payback period to this project?

If a project costs $$200$ and the present value of its future cash flows is $$240,$ what is the profitability index value of the project?

Answer rating: 100% (QA)

To calculate the payback period we need to determine the time it takes for the cumulative cash inflo... View the full answer