A machine can be purchased for $160,000 and used for five years, yielding the following net...

A machine can be purchased for $160,000 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		$	10,700		$	26,700		$	57,000		$	40,100		$	106,800

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.)

Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow

0 (160,000) $(160,000)

1 $10,700

2 26,700

3 57,000

4 40,100

5 106,800

Payback period =

Expert Solution

ekkarill92 answered 10 months ago

A machine can be purchased for $270,000 and used for five years, yielding the following net...

A machine can be purchased for $270,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 19,000 $ 28,000 $ 58,000 $ 49,500 $ 103,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)

A machine can be purchased for $226,000 and used for five years, yielding the following net...

A machine can be purchased for $226,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 22,500 $ 44,000 $ 77,000 $ 46,000 $ 108,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value...

A machine can be purchased for $180,000 and used for five years, yielding the following net...

A machine can be purchased for $180,000 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 $ 12,100 $ 30,100 $ 69,000 $ 45,300 $ 120,400 Year Net Income Depreciation Net Cash Flow Cummulative Cash Flow 0 (180,000) (180,000) 1 12,100 2 30,100 3 69,000 4 45,300 5 120,400 Payback...

A machine can be purchased for $290,000 and used for five years, yielding the following net...

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. Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value 1 2 3 4 5 Annual Cash Flows Year...

A machine can be purchased for $222,000 and used for five years, yielding the following net...

A machine can be purchased for $222,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 19,000 $ 49,000 $ 59,000 $ 57,500 $ 105,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value...

A machine can be purchased for $269,000 and used for five years, yielding the following net...

A machine can be purchased for $269,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 21,000 $ 49,000 $ 68,000 $ 57,000 $ 132,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)

A machine can be purchased for $283,000 and used for five years, yielding the following net...

A machine can be purchased for $283,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 21,000 $ 30,000 $ 73,000 $ 41,000 $ 122,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)

A machine can be purchased for $252,000 and used for five years, yielding the following net...

A machine can be purchased for $252,000 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 Year 2 Year 3 Year 4 Year 5 Net income $ 13,000 $ 28,000 $ 62,000 $ 48,000 $ 101,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value ...

PLEASE DO PROBLEM A machine can be purchased for $60,000 and used for five years, yielding...

PLEASE DO PROBLEM A machine can be purchased for $60,000 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 $ 3,900 $ 9,900 $ 32,000 $ 14,700 $ 39,600 Compute the machine’s payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to...

Five years ago, your company purchased a machine used in manufacturing for $110,000. You have learned...

Five years ago, your company purchased a machine used in manufacturing for $110,000. You have learned that a new machine is available that offers many advantages; you can purchase it for $150,000 today. It will be depreciated on a straight-line basis over ten years and has no salvage value. You expect that the new machine will reduce the current investment in working capital by $10,000. The current machine is being depreciated on a straight-line basis over a useful life of...

Question