Question: I need tutor help A machine can be purchased for $289,000 and used for five years, yielding the following net incomes. In projecting net incomes,
I need tutor help

A machine can be purchased for $289,000 and used for five years, yielding the following net incomes. In projecting net incomes, double-declining depreciation is applied, using a five-year life and a zero salvage value. Net incomes Year 1 $20,000 Year 2 $43,000 Year 3 $77,000 Year 4 Year 5 $57,000 $105,000 Compute the machine's payback period (ignore taxes). (Round your intermediate calculations to 3 decimal places and payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) 1 Accumulated Depreciation at Year-End Ending Book Value 3 2 4 5 Cumulative Cash Flow Annual Cash Flows Year Net income Depreciation Net Cash Flow 0 $ (289,000) $ 1 20,000 2 43,000 3 77,000 4 57,000 5 105,000 (289,000) Payback period = years
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
