1. Jose Company is considering investing in new equipment that will cost $1,200,000 with a 10 -year useful life, The new equipment is expected to produce net income of $80,000 annually over its useful life. Depreciation expense, using the straight-line rate, is $130,000 per year: Instructions Compute the cash payback period. 1. Jose Company is considering investing in new equipment that will cost $1,200,000 with a 10 -year useful life, The new equipment is expected to produce net income of $80,000 annually over its useful life. Depreciation expense, using the straight-line rate, is $130,000 per year: Instructions Compute the cash payback period