A machine can be purchased for $130,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $26,000. Income Year 1 $8,800 Year 2 $21,800 Year 3 $57,000 Year 4 $32,900 Year 5 $87,200 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) × Answer is complete but not entirely correct. Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (130,000) $ (130,000) Year 1 $ 8,800 $ 26,000 34,800 34,800 x Year 2 21,800 26,000 47,800 82,600 x Year 3 57,000 26,000 83,000 130,000 × Year 4 32,900 26,000 Year 5 87,200 26,000 Payback period = 2.57 years
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- A machine can be purchased for $50,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $10,000. Income Year Year 1 $3,300 Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 Year 2 $8,300 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Net Income Depreciation 3,300 8,300 30,000 12,400 33,200 Year 3 $30,000 Year 4 $12,400 Net Cash Flow $ (50,000) $ Payback period = Year 5 $33,200 Cumulative Net Cash Flow (50,000) 0 0A machine can be purchased for $90,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $18,000 Income Year 1 Year 3 Year 5. $6,000 $36,000 $60,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Initial invest - Year 1 Year 2 Year 3 Year 4 Year 5 Net Income Depreciation $ Year 2 $15,000 6,000 15,000 36,000 22,500 60,000 Year 4 $22,500 Net Cash Flow $ Cumulative Net Cash Flow (90,000) $ Payback period- (90,000)A machine can be purchased for $80,000 and used for five years, yielding the following Income. This income computation Includes annual depreciation expense of $16,000. Income Year 1 $5,300 Year 2 $13,300 Year 3 Year 4 Year 5 $35,000 $19,900 $53,200 Compute the machine's payback period. Note: Round payback period answer to 2 decimal places. Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (80,000) $ (80,000) Year 1 $ 5,300 Year 2 13,300 Year 3 35,000 Year 4 19,900 Year 5 53,200 Payback period=
- 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 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow (60,000) $ (60,000) 1 $ 3,900 2 9,900 3 32,000 4 14,700 5 39,600 Payback periodA machine can be purchased for $150,000 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. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.) Year 1 Year 2 Year 3 Year 4 Year 5 Net income . $10,000 $25,000 $50,000 $37,500 $100,000A machine can be purchased for $284,000 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 $ 35,000 $ 67,000 $ 40,000 $ 126,000 Compute the machine’s payback period (ignore taxes). (Round payback period answer to 3 decimal places.)
- A machine can be purchased for $150,000 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. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.)Hudson Co. can purchase a machine for $190,000 and use it 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 $12,800 $31,800 $76,000 $47,900 $127,200 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 (190,000) $ (190,000) 1 12,800 31,800 76,000 4 47,900 127,200 Payback period = %24 %24 3,Required information [The following information applies to the questions displayed below.] Tory Enterprises pays $256,400 for equipment that will last five years and have a $45,400 salvage value. By using the equipment in its operations for five years, the company expects to earn $90,300 annually, after deducting all expenses except depreciation. Prepare a table showing income before depreciation, depreciation expense, and net (pretax) income for each year and for the total five-year period, assuming straight-line depreciation is used. Year 1 Year 2 Year 3 Year 4 Year 5 Totals 8 O Income Before Depreciation $ reciation Expense 0 $ 6 delete home 10
- A machine with a purchase value of (150,000) dollars and the useful life of the machine is 7 years. Calculate the annual depreciation of the machine | And the book value for each year by the method of the sum of the years of the productive life, if you know that the book value of the machine at the end of its life (the ruins) is 80,000 dollars.Provide step by step manual solution, given, and depreciation table for below mentioned problem. Make sure yet that your answer is the same as the given answer before sending your solution. An asset costing P50,000 has a life expectancy of 6 years and an estimated salvage value of P8,000. Calculate the depreciation charge at the end of the fourth period using fixed-percentage method. Answer. P5,263.87A certain machine has a first cost of 30,000; annual costs of 6,000; a salvage value of 4,000 and a life of 10 years. Assume an interest rate of 8% What is the depreciation allowance in years 1-10 for this asset using straight line depreciation?