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Sterling Corporation Has Borrowed $75,000 That Must Be Repaid in Two

Question 28

Multiple Choice

Sterling Corporation has borrowed $75,000 that must be repaid in two years.This $75,000 is to be invested in an eight-year project with an estimated annual net cash flow of $15,000.The payback period for this investment is:


A) Two years.
B) Five years.
C) Eight years.
D) Indeterminable with the given information.

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