Giraldi Company Has Identified That the Cost of a New

question 37

Multiple Choice

Giraldi Company has identified that the cost of a new computer will be $48,000, 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:

• A) 24.0 years.
• B) 16.0 years.
• C) 9.6 years.
• D) 6.0 years.