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Sterling Corporation has borrowed $115,050 that must be repaid in two years. This $115,050 is to be invested in an eight-year project with an estimated

Sterling Corporation has borrowed $115,050 that must be repaid in two years. This $115,050 is to be invested in an eight-year project with an estimated annual net cash flow of $19,500. The payback period for this investment is:

2.0 years.

Indeterminable with the given information.

5.9 years.

8.0 years.

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