Dragon Company is considering investing in new equipment that will cost $1,100,000 with a 10-year...
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Accounting
Dragon Company is considering investing in new equipment that will cost $1,100,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $85,000 over its useful life. Depreciation expense, using the straight-line rate, is $110,000 per year. What is the cash payback period, rounded to 1 decimal place?
Group of answer choices
10 years
5.6 years
5 years
None of the answers provided
12.9 years
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