Multiple Choice
Flores Company has identified that the cost of new manufacturing equipment will be $60000 but with the use of the new equipment net income will increase by $5000 a year. If depreciation expense is $5000 a year the cash payback period is:
A) 16.7 years.
B) 11.4 years.
C) 12 years.
D) 6 years.
Correct Answer:
Verified
Correct Answer:
Verified
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