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A machine can be purchased for $288,000 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. Year 1 Year 2 Year 3 Year 4 Year 5 Net income $17,000 $34,000 $56,000 $48,000 $104,000Compute the machine's payback period (ignore taxes).

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Answer:

2.54 years

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