Question
#3 A machine can be purchased for $80,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of
#3
A machine can be purchased for $80,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $16,000.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Income | $5,300 | $13,300 | $35,000 | $19,900 | $53,200 |
Compute the machines payback period. (Round payback period answer to 2 decimal places.)
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Managerial Accounting Tools For Business Decision Making
Authors: Weygandt, Kimmel, Kieso
4th Edition
0470478535, 978-0470478530
