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A machine can be purchased for $210,000 and used for five years, yielding the following net incomes. In projecting net incomes double-declining depreciation is applied,
A machine can be purchased for $210,000 and used for five years, yielding the following net incomes. In projecting net incomes double-declining depreciation is applied, using a five-year life and a zero salvage value. Year 2Year 3Year 4Year5 $15,000 $46,000 $51,000 $50,500 $108,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% of Book Value) Beginning Book lated Ending Book Depreciation at Year-End Va 210,000 Net Cash Flow Net income De (210.000) $ (210,000) 15,000 46,000 51,000 50,500 108,000 Payback period Next > Prev 2 of 6
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