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Exercise 24-3 Payback period computation; straight-line depreciation LO P1 A machine can be purchased for...

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Exercise 24-3 Payback period computation; straight-line depreciation LO P1 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 $5,300 Year 2 $13,300 Year 3 $35,000 ear 4 $19,900 Year 5 $53,200 Net income 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.) Year Net Income Depreciation Net Cash FlowCumulative Cash Flow (80.000) S (80,000) 5,300 S 13,300 35,000 19,900 53,200 10,000 Payback period

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