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.) Year 1 Year 2 Year 3 Year 4 Year 5 Net income . $10,000 $25,000 $50,000 $37,500 $100,000
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.) Year 1 Year 2 Year 3 Year 4 Year 5 Net income . $10,000 $25,000 $50,000 $37,500 $100,000
Chapter9: Capital Budgeting And Cash Flow Analysis
Section: Chapter Questions
Problem 2P
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A machine can be purchased for $150,000 and used for five years, yielding the following net incomes. In
projecting net incomes, straight-line
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 $100,000
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