A machine can be purchased for $230,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $46,000. Year 2 Year 3 Year 4 $38,600 $106,000 $58,300 Year 5. $154,400 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Income Year 1 $15,600 Year Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 $ Answer is complete but not entirely correct. Net Cash Flow Net Income 15,600 38,600 106,000 58,300 154,400 Depreciation $ 46,000 46,000 46,000 46,000 46,000 $ (230,000) 61,600 82,600 Payback period= $ Cumulative Net Cash Flow (230,000) (168,400) 85,800 X 66,200 x 2.56 years

A machine can be purchased for $230,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $46,000. Year 2 Year 3 Year 4 $38,600 $106,000 $58,300 Year 5. $154,400 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Income Year 1 $15,600 Year Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 $ Answer is complete but not entirely correct. Net Cash Flow Net Income 15,600 38,600 106,000 58,300 154,400 Depreciation $ 46,000 46,000 46,000 46,000 46,000 $ (230,000) 61,600 82,600 Payback period= $ Cumulative Net Cash Flow (230,000) (168,400) 85,800 X 66,200 x 2.56 years

Name: Ashavinbhai A machine can be purchased for $230,000 and used for five
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Description: Ashavinbhai A machine can be purchased for $230,000 and used for five years, yielding the following income. This income computation includesannual depreciation expense of $46,000.Year 1Year 2Year 3Year 4$38,600 $106,000 $58,300Year 5$154,400$15,600Co

Principles of Accounting Volume 1

19th Edition

ISBN:9781947172685

Author:OpenStax

Publisher:OpenStax

Chapter11: Long-term Assets

Section: Chapter Questions

Problem 8PA: Referring to PA7 where Kenzie Company purchased a 3-D printer for $450,000, consider how the...

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