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A machine can be purchased for $100,000 and used for five years, ylelding the following income. This income computation includes annual depreciation expense of $20,000.
A machine can be purchased for $100,000 and used for five years, ylelding the following income. This income computation includes annual depreciation expense of $20,000. Year 1 Year 2 Year 3 Year 4 Year 5 Income $6,700 $16,700 $38,000 $25,100 $66,800 Compute the machine's payback period (Round payback period answer to 2 decimal places.) Year Net Income Depreciation Cumulative Net Cash Not Cash Flow Flow $ (100,000) $ (100,000) $ Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 6,700 16,700 38,000 25,100 66,800 0 0 Payback period
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