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Please help with computing the attached: A machine can be purchased for $290,000 and used for five years, yielding the following net incomes. In projecting
Please help with computing the attached:
A machine can be purchased for $290,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied, using a five-year life and a zero salvage value Year 1 $11,500 $28,000 $80,000 $56,500 $125,000 Year 2 Year 3 Year 4 Year 5 Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Annual Depr. (40% Book Value of Book Value) Depreciation at Year-EndValue Accumulated Ending Book Year 2 4 Annual Cash Flows Cumulative Cash Flow Year Net income Depreciation Net Cash Flow $ (290,000) 11,500 28,000 80,000 56,500 125,000 0 $ (290,000) 2 80,000 56,500 125,000 80,000 136,500 261,500 4 Payback period yearsStep by Step Solution
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