Answer:
D: 5 years
Explanation:
Cash payback period calculates the amount of years it takes for the amount invested in a project/ product / equipment to be recouped from revenue.
The cost of the computer is $40,000
Net income increases by $ 5,000 yearly
Depreciation expense is $3,000 yearly
Revenue = $5000 +$3000=$8,000
Pay back period = $40,000 / $8000 = 5 years
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I believe the answer is d. I hope it was right and I helped!
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