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Author Question: A convenience store owner is contemplating putting a large neon sign over his store. It would cost ... (Read 225 times)

kshipps

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on: Jul 9, 2019
A convenience store owner is contemplating putting a large neon sign over his store. It would cost $50,000, but is expected to bring an additional $24,000 of profit to the store every year for five years. Would this project be worthwhile if evaluated using a payback period of two years or less and if the cost of capital is 10%?
◦ Yes, since the cash flows after two years are greater than the initial investment.
◦ Yes, since the value of the cash flows into the store, in present dollars, are greater than the initial investment.
◦ Yes, since it will pay back its initial investment in two years.
◦ No, since the value of the cash flows over the first two years are less than the initial investment.
Fundamentals of Corporate Finance ¦ Berk, DeMarzo, Harford ¦ 2nd Edition
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Marked as best answer by kshipps on Jul 9, 2019

kswal303

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Reply #1 on: Jul 9, 2019
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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kshipps

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Reply #2 on: Jul 9, 2019
Thank you!


kswal303

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Reply #3 on: Jul 9, 2019
Always glad to help...


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