A machine can be purchased for $100,000 and used for five years, yielding the following net incomes. In projecting net incomes,

Question

3 years ago

9

A machine can be purchased for $100,000 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. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $ 6,700 $ 16,700 $ 38,000 $ 25,100 $ 66,800 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.)

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1 answer:

horsena [70] · Answer 1 · 2022-05-22T10:07:31+03:00

horsena [70]3 years ago

7 0

Answer: 2.69 years

Explanation: