Jack Is Considering Adding Toys to His General Store

Multiple Choice

Jack is considering adding toys to his general store.He estimates that the cost of inventory will be $4,200.The remodeling and shelving costs are estimated at $1,500.Toy sales are expected to produce net cash inflows of $1,200, $1,500, $1,600, and $1,750 over the next four years, respectively.Should Jack add toys to his store if he assigns a three-year payback period to this project?

A) yes; because the payback period is 2.94 years.
B) yes; because the payback period is 2.02 years.
C) yes; because the payback period is 3.80 years.
D) no; because the payback period is 2.02 years.
E) no; because the payback period is 3.80 years.