Answer Happy

Damen Mack on the "Gas Got convenience store and gas station Ater hearing a marketing lecture, he realizes that might be possible to draw more customers to his high margin convenience alive by saling his gasoline at a lower price However, the "Gas n Go is unable to qualify for volume discounts on its gasoline purchases, and therefore cannot sell gasoline for proft if the price is lowered Each new pump will cost $105,000 to install, but will increase customer traffic in the store by 11,000 customers per year. Also, because the "Gas Go would be seling te gasoline at no profit Damen plane on increasing the profit margin on convenience store me incrementally over the next five years Assume a discount rate of 7 percent. The projected convenience store sales per customer and the projected profit margin for the next five years are given in the late below 1 2 3 What is the NPV of the next five years of cash flows if Damen had four new pumps ? NPV (Enter your response rounded to two decimal places) Projected Convenience Store Sales Per Customer 56 $5.50 50 $11 $13 Projected Prof Margin 10% 20% 29% 30%