exercise 24-3 Payback period computation; straight-line depreciation LO P1

Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for $210,000 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 Year 1 $14,200 Year 2 $35,200 Year 3 $91,000 Year 4 $53,100 Year 5 $140, 800 income 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 $ (210,000) $ (210,000) 14,200 35,200 91,000 53,100 140,800 Payback period ar