Refer to the information in Exercise 24-3 and assume instead that double-declining depreciation is applied. Compute the machine’s payback period (ignore taxes). (Round the payback period to three decimals.)

Data From Exercise 24-3

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.)

Transcribed Image Text:

Year 1 Year 2 Year 3 Year 4 Year 5 Net income.... $10,000 $25,000 $50,000 $37,500 $100,000