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Find cash payback period if depreciation expense is given

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:

20 years.
10 years.
8 years.
5 years.

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Finance Basics: Find cash payback period if depreciation expense is given

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find cash payback period if depreciation expense is given

Reference No:- TGS0672381

Have a Question? (oR Write a Review)

Recent Questions Asked Finance Basics

Q : Find the profitability index for the project

Q : What was the standard materials price per pound

Q : Find the expected rate of return

Q : Determining the square feet of space

Q : Find cash payback period if depreciation expense is given

Q : Common mental decision biases

Q : State the assumptions of the capm

Q : Compute the times interest earned ratio for given year

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Solution Preview :

Prepared by a verified Expert

Finance Basics: Find cash payback period if depreciation expense is given

Reference No:- TGS0672381

Recent Questions Asked Finance Basics

Q : Find the profitability index for the project

Q : What was the standard materials price per pound

Q : Find the expected rate of return

Q : Determining the square feet of space

Q : Find cash payback period if depreciation expense is given

Q : Common mental decision biases

Q : State the assumptions of the capm

Q : Compute the times interest earned ratio for given year

Q : What are the project costs of capital

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