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 8 months ago

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