Net income Year 1 $24,000 Year 2 $34,000 Year $67,000 $57,000 $134,000 Compute the machine's payback period (ignore taxes). (Round payback period answ Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value 1 264,000 105,600 105,600 158,400 2 158,400 63,360 168,960 95,040 3 95,040 38,016 206,976 57.024 4 57,024 22,810 229,786 34,214 5 34,214 34,214 264,000 10 Annual Cash Flows Year Net income Depreciation Net Cash Flow 0 $ (264,000) 1 24,000 105,600 Cumulative Cash Flow $ (264,000) 130,100 2 34,000 63,360 3 67,000 38,016 105.016 105,016 4 57,000 22,810 79,810 184,826 5 134,000 34,214 168,214 353,040 Payback period= years www < Prev 3 of 10 Next >