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A company is planning to purchase a machine that will cost $36.000, have a six-year...

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Accounting

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A company is planning to purchase a machine that will cost $36.000, have a six-year life, and be depreciated over a six-year period with no salvage value The company expects to sell the machine's output of 3,000 units evenly throughout each year. A projected income statement for each year of the asset's life appears below. What is the payback period for this machine? $ 150,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (304) Net income 554,000 6,000 30,000 (110,000) $ 40.000 (12,000) $ 28,000 Multiple Choice O 6.00 years. 1.06 years. 2.57 years. 1.29 years. 3.94 years

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