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A machine can be purchased for $230,000 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 $230,000 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 $15,680 $38,680 $186,6e8 $58,300 $154,400 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 Cumulative Cash Flow Flow $ 230,000) $ (230,000) 0 1 2 3 $ 15,600 38,600 106,000 58,300 154,400 5 Payback period
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