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If a company borrows $50,000 to build a new showroom, resulting in an additional $10,000 in sales per year, the simple payback is: $5,000 5 years 10 years $10,000

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter11: Capital Budgeting Decisions

Section: Chapter Questions

Problem 3EB: A restaurant is considering the purchase of new tables and chairs for their dining room with an...

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Question

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If a company borrows $50,000 to build a new showroom, resulting in an additional
$10,000 in sales per year, the simple payback is:
$5,000
5 years
10 years
$10,000
$50,000

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