You are the project manager at Happy Coffee Café, a rapidly growing franchise selling premium blended coffee. Currently, your company is planning on opening additional stores through the United states. Your target markets primarily include densely populated metropolitan areas. Your company is evaluating different areas for expansion, including New York, San Francisco, and Seattle. Based on your market analysis you have obtained the following information:
New York-IRR (45%), payback period (1.5 years) San Francisco-IRR (32%), payback period (1.1 years) Seattle-IRR (36%), payback period (0.75 years)
Based on this data which area is best for Happy Coffee Café?
A. San Francisco since the IRR is the lowest
B. New York since IRR is highest
C. Seattle since payback period is shortest
D. New York since the payback period is the longest
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