A machine can be purchased for $110,000 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.

Net Income year 1 - 7,400 year2: 18,400 year 3: 43,000 year 4: 27,700 year5: 73,600