Question
Exercise 26-4 (Static) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $150,000 and used for five years,
Exercise 26-4 (Static) Payback period, unequal cash flows, and depreciation adjustment LO P1
A machine can be purchased for $150,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $30,000.
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Income | $10,000 | $25,000 | $50,000 | $37,500 | $100,000 |
Compute the machines payback period. (Round payback period answer to 2 decimal places.)
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Accounting for Governmental and Nonprofit Entities
Authors: Earl R. Wilson, Jacqueline L Reck, Susan C Kattelus
16th Edition
78110939, 978-0078110931
