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A machine can be purchased for $284,000 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 $284,000 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 | $ | 23,000 | $ | 39,000 | $ | 62,000 | $ | 40,000 | $ | 101,000 | ||||||||||
Compute the machines payback period (ignore taxes). (Round payback period answer to 3 decimal places.)
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