A machine can be purchased for $140,000 and used for five years, yielding the following...
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Accounting
A machine can be purchased for $140,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied, using a five-year life and a zero salvage value.
Year 1
Year 2
Year 3
Year 4
Year 5
Net income
$
9,500
$
23,500
$
64,000
$
35,500
$
94,000
Compute the machines payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)
Net Cash Cumulative Cash Net Income Depreciation Year Flow Flow (140,000) (140,000) $ 9,500 1 23,500 64,000 4 35,500 94,000 Payback period =
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