Reference no: EM131539920

Question: 1. What are the incremental costs of accepting additional business?

2. 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. Compute the machine's payback period (ignore taxes). (Round the payback period to two decimals.)

                                   Year 1          Year 2            Year 3             Year 4            Year 5

Net incomes . . . . . . . . $20,000         $50,000         $100,000           $75,000       $200,000