A machine can be purchased for $200,000 and used for five years, generating the following net income. When projecting net income, straight-line depreciation is applied, using a useful life of five years and a residual value of zero.

Year 1

year 2

year 3

year 4

year 5

Net Income

ps

13,500

ps

33,500

ps

83,000

ps

50,500

ps

134.000

Calculate the payback period for the machine (ignore taxes).

Answer rating: 100% (QA)

Year 0 1 2 3 4 5 01 Answer Payback period 2 year... View the full answer