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3. A machine can be purchased for $80,000 and used for five years, yielding the following...

3. A machine can be purchased for $80,000 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.

Year 1 Year 2 Year 3 Year 4 Year 5
Net income $ 5,300 $ 13,300 $ 35,000 $ 19,900 $ 53,200


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.)
  

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calculation of Payback period Time required to recover the initial cash outflow is called the Payback period. The payback perTo splelete the Payback Berial, we need to (gluplate the 99949.)._. 9th flows of project. Annual Gsh flow : Net Income t Non-

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