A machine can be purchased for 300000 and used for 5 years

Reference no: EM13609252

A machine can be purchased for $300,000 and used for 5 years, yielding the following net incomes. In projecting net incomes, double-declining balance depreciation is applied, using a 5-year life and a $50,000 salvage value. Year 1 Year 2 Year 3 Year 4 Year 5 Net incomes $ 20,000 $ 50,000 $ 100,000 $ 75,000 $ 200,000 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and final answer to 2 decimal places.)

Reference no: EM13609252

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