Solution-Compute the machine payback period

Compute the machine payback period

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Question - A machine can be purchased for $291,000 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	$18,500	$45,000	$76,000	$51,500	$105,000

Compute the machine's payback period (ignore taxes).

Reference no: EM132428707

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Compute the machine payback period

Reference no: EM132428707

Reference no: EM132428707

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