Exercise 26-4 Payback period; accelerated depreciation LO P1 A machine can be purchased for $223,000 and used for five years, ylelding the following net incomes in projecting net incomes double-declining depreciation is applied using a five-year life and a zero salvage value Year Net Income $19,500 Year 2 $43,000 Year 3 $54,000 Year 4 538,000 Year 3 $125,000 Compute the machine's payback period (ignore taxes) (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year End Year Beginning Book Value Ending Book Value 1 2 3 + 5 Annual Cash Flows Cumulative Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value 1 2 3 4 On Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (223,000) S 0 1 2 3 2 (223,000) 19,500 43,000 54,000 38,000 125,000 3 54 000 4 54,000 92.000 217,000 38.000 125.000 5 Payback period years Beyer Company is considering the purchase of an asset for $215,000. It is expected to produce the following net cash flows. The cash flows occur evenly within each year. Assume that Beyer requires a 15% return on its investments (PV of $1. Ev of $1. PVA of $1, and FVA Of SD) (Use appropriate factor(s) from the tables provided.) Net cash flows Year 1 564,000 Year 2 $55,000 Year $90,000 Year a $146,000 Year 3 $56,000 Total 5411,000 a. Compute the net present value of this investment b. Should Beyer accept the investment? Complete this question by entering your answers in the tabs below. Required a Required B Compute the net present value of this investment. (Round your answers to the nearest whole dollar Year Net Cash Flows Present Value of 1 Present Value of Net Cash Flows 1 2 Complete this question by entering your answers in the tabs below. Required A Required B Compute the net present value of this investment. (Round your answers to the nearest whole c Year Net Cash Flows Present Value of 1 at 15% Present Value of Net Cash Flows 1 2 3 4 5 0 0 Totals $ Amount invested Net present value $ 0 Frankie Required B > a. Compute the net present value of this investment. b. Should Beyer accept the investment? Complete this question by entering your answers in the tabs below. Required A Required B Should Beyer accept the investment? Should Beyer accept the investment?