Sterling Corporation has borrowed $72,500 that must be repaid in three years. This $72,500 is to be
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Question:
Sterling Corporation has borrowed $72,500 that must be repaid in three years. This $72,500 is to be invested in an nine-year project with an estimated annual net cash flow of $14,500. The payback period for this investment is:
A). Three years.
B). Five years.
C). Indeterminable with the given information.
D). Nine years.
Related Book For
Financial and Managerial Accounting
ISBN: 978-1337119207
14th edition
Authors: Carl S. Warren, James M. Reeve, Jonathan Duchac
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