Alicia is considering adding toys to her gift shop. She estimates that the cost of inventory will be $7,500.

Alicia is considering adding toys to her gift shop. She estimates that the cost of inventory will be $7,500. The remodeling expenses and shelving costs are estimated at $1,800. Toy sales are expected to produce net cash inflows of $2,300, $2,900, $3,200, and $3,400 over the next four years, respectively. Should Alicia add toys to her store if she assigns a three-year payback period to this project? Why or why not?    A.  No; The payback period is 2.93 years. B.  No; The payback period is 3.26 years. C.  Yes; The payback period is 2.93 years. D.  Yes; The payback period is 3.01 years. E.  Yes; The payback period is 3.26 years.

78.	A project has an initial cost of $18,400 and produces cash inflows of $7,200, $8,900, and $7,500 over three years, respectively. What is the discounted payback period if the required rate of return is 16 percent?    A.  2.31 years B.  2.45 years C.  2.55 years D.  2.62 years E.  never

79.	Scott is considering a project that will produce cash inflows of $2,100 a year for 4 years. The project has a 12 percent required rate of return and an initial cost of $6,000. What is the discounted payback period?    A.  3.72 years B.  3.91 years C.  4.26 years D.  4.38 years E.  never