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Grange Company has the opportunity to purchase an asset that costs $45,000. The asset is expected to increase net income by $15,000 per year. Depreciation

Grange Company has the opportunity to purchase an asset that costs $45,000. The asset is expected to increase net income by $15,000 per year. Depreciation expense will be $5,000 per year. Based on this information the payback period is: 2.5 years. 2.25 years. 9 years. 3 years.

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