Answered step by step
Verified Expert Solution
Link Copied!

Question

...
1 Approved Answer

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

image text in transcribed
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 Net Income Year 1 39,500 Year 2 $23.500 164.000 Year 4 $35,500 Years 399,000 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cimolatie Cash Flow 0 5 (140.000) [140,000) 1 5 2 3 9.500 23 500 64 000 35,500 94.000 4 5 Payback period

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

9781292016924

Students also viewed these Accounting questions