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A machine can be purchased for $255,000 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 $255,000 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 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||||||||||||||||
Net income | $ | 13,000 | $ | 29,000 | $ | 57,000 | $ | 38,000 | $ | 102,000 | ||||||||||
Compute the machines payback period (ignore taxes)
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