Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

image text in transcribed

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 =

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

The Development Of The American Public Accounting Profession

Authors: T.A. Lee

1st Edition

0415403944, 9780415403948

More Books

Students also viewed these Accounting questions

Question

Find the following limit. lim (x, y)(0, 1) tan 1 x + 1 x + (y 1)_ -

Answered: 1 week ago

Question

OUTCOME 6 Explain and give examples of diversity management.

Answered: 1 week ago