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Diamond Co. is considering investing in new equipment that will cost $900,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $30,000 over its useful life. Depreciation expense, using the straight-line rate, is $90,000 per year.

Instructions:
Compute the cash payback period.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9977407

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