Use the information below to answer the remaining questions:
Steve is considering adding tools to his auto body shop. He estimates that the cost of inventory will be $3,500. The remodeling expenses and shelving costs are estimated at $2,400. Tool sales are expected to produce net cash inflows of $2,800, $2,600, and $2,600 over the next three years, respectively. Should Steve add tools to his store if he assigns a two-year payback period to this project? Why or why not?