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 $127,200 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow 2$ (190,000) $ (190,000) 1 24 12,800 2 31,800 3 76,000 4 47,900 127,200 Payback period =

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 $127,200 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow 2$ (190,000) $ (190,000) 1 24 12,800 2 31,800 3 76,000 4 47,900 127,200 Payback period =

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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