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HOW DO I CALCULATE? A machine can be purchased for $70,000 and used for five years, yielding the following net incomes. In projecting net incomes,
HOW DO I CALCULATE?
A machine can be purchased for $70,000 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. Net income Year 1 $4,600 Year 2 $11,600 Year 3 $ 34,000 Year 4 $17,300 Year 5 $46,400 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 $ 70,000) $ (70,000) 4,600 11,600 34,000 17,300 46,400 Payback period =Step by Step Solution
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