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Klayton Company has the opportunity to purchase an asset that costs $50,000. The asset is expected to increase net income by $20,000 per year. The

Klayton Company has the opportunity to purchase an asset that costs $50,000. The asset is expected to increase net income by $20,000 per year. The asset has a five-year useful life. Depreciation expense used in computing net income amounted to $10,000 per year. Based on this information the payback period is

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