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 $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=
Chapter11: Long-term Assets
Section: Chapter Questions
Problem 11PA: Montezuma Inc. purchases a delivery truck for $15,000. The truck has a salvage value of $3,000 and...
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