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Question 40 of 50 This question: 2 point(s) possible SUD Redtail Hawk Company is evaluating two possible investments in depreciable plant assets. The company uses

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Question 40 of 50 This question: 2 point(s) possible SUD Redtail Hawk Company is evaluating two possible investments in depreciable plant assets. The company uses the straight - line method of depreciation. The following information is available Investment A Investment B Initial capital investment $52,500 $420,000 Estimated useful life 10 years 10 years Estimated residual value $7,000 $19,000 Estimated annual net cash inflow $15,000 $70,000 Required rate of return 9% 7% How long is the payback period for Investment A? A. 3.5 years B. 6 years C. 7.5 years D. 2.14 years

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