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Exercise 24-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $200,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $40.000. Income Year 1 $13,500 Year 2 $33,500 Year 3 $83,000 Year 4 $50,500 Year 5 $134,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (200,000) $ (200,000) Year 1 $ 13,500 Year 2 33,500 Year 3 83,000 Year 4 50,500 Year 5 134,000 0 0 Payback period=

Exercise 24-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $200,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $40.000. Income Year 1 $13,500 Year 2 $33,500 Year 3 $83,000 Year 4 $50,500 Year 5 $134,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (200,000) $ (200,000) Year 1 $ 13,500 Year 2 33,500 Year 3 83,000 Year 4 50,500 Year 5 134,000 0 0 Payback period=

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Exercise 24-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $200,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $40.000. Income Year 1 $13,500 Year 2 $33,500 Year 3 $83,000 Year 4 $50,500 Year 5 $134,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (200,000) $ (200,000) Year 1 $ 13,500 Year 2 33,500 Year 3 83,000 Year 4 50,500 Year 5 134,000 0 0 Payback period=
Transcribed Image Text:Exercise 24-4 (Algo) Payback period, unequal cash flows, and depreciation adjustment LO P1 A machine can be purchased for $200,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $40.000. Income Year 1 $13,500 Year 2 $33,500 Year 3 $83,000 Year 4 $50,500 Year 5 $134,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Net Cash Flow Initial invest $ (200,000) $ (200,000) Year 1 $ 13,500 Year 2 33,500 Year 3 83,000 Year 4 50,500 Year 5 134,000 0 0 Payback period=
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