Question: A machine can be purchased for $90,000 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 $90,000 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. Net income Year 1 $6,000 Year 2 $15,000 Year 3 $36,000 Year 4 $22,500 Year 5 $60,000 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 $ (90,000) $ (90,000) $ 2. 3 4 6,000 15,000 36,000 22,500 60,000 5 Payback period
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