What is the cash payback period for pharoah company

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Problem 1: Pharoah Company has identified that the cost of a new computer will be $40000, but with the use of the new computer, net income will increase by $3000 a year. If depreciation expense is $1000 a year, the cash payback period is:

A. 20.0 years.

B. 40.0 years.

C. 13.3 years.

D. 10.0 years.

Reference no: EM132719324

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