The use of the new computer net income will increase by

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Sue Bonno Company has identified that the cost of a new computer will be $40,000, but with the use of the new computer, net income will increase by $5,000 a year. If depreciation expense is $3,000 a year, the cash payback period is:

  1. 20 years.
  2. 10 years.
  3. 8 years.
  4. 5 years.

Reference no: EM13567541

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