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A machine can be purchased for $180,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied
A machine can be purchased for $180,000 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 | $ | 12,100 | $ | 30,100 | $ | 69,000 | $ | 45,300 | $ | 120,400 | ||||||||||
Compute the machines payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.)
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