question archive Adam is considering adding accessories to his game shop

Adam is considering adding accessories to his game shop

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Adam is considering adding accessories to his game shop. He estimates that the initial cost of the project will be $10,300. Accessories sales are expected to produce net cash in?ows of $2,300, $2,900, $3,200, and $4,400 over the next four years, respectively. Should Adam add accessories to his store if the required payback period is 3 years to this project? Why or why not? O No; The payback period is 2.60 years. © No; The payback period is 3.43 years. 0 Yes; The payback period is 2.60 years. 0 No; The project never pays back. 0 Yes; The payback period is 3.43 years.

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