Question: 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,

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.)

YearYear 2 Year 3 Year 4Year 5 Net Income ..IO0 $10,000 $25,000 $50,000 $37,500 $100,000

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