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A machine can be purchased for $231,000 and used for five years, yielding the following...

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Accounting

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A machine can be purchased for $231,000 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 income Year 1 $15,000 Year 2 $35,000 Year 3 $55,000 Year 4 $55,000 Year 5 $139,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Year Beginning Book Value Ending Book Value 1 2 3 4 5 Year Annual Cash Flows Depreciation Net Cash Flow Net Income 0 Cumulative Cash Flow 5 (231,000) 1 2 3 4 5 $ 231.000) 15,000 35,000 55 000 55,000 139,000 Payback period years

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