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Compute the cash payback period for diamond company

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Reference no: EM132631278

Diamond Company is considering investing in new equipment that will cost $600,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $40,000 over its useful life. Depreciation expense, using the straight-line rate, is $60,000 per year.

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Problem 1: Compute the cash payback period.

Reference no: EM132631278

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