QUESTION 23 23. 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 a. 3.5 years. b. 5 years. c. 1.67 years. d. 2.5 years