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Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $130,000 and used for five years, yielding the following net
Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $130,000 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 $8,800 Year 2 $21,800 Year 3 $57,000 Year 4 $32,900 Net income Year 5 $87,200 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 Flow Cumulative Cash Flow 0 $ (130,000) $ (130,000) 1 $ 2. 3 8,800 21,800 57,000 32,900 87,200 4 0 5 0 Payback period =
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