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A machine can be purchased for $234,000 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 $10,500 $31,000 $67,000 $47,500 $140,000 Year 2 Year 3 ear Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Book Value Annual Depr.(40% of Book Value) Accumulated Ending Book Year Depreciation at Year-EndValue 2 4 5 Annual Cash Flows Cumulative Cash Flow Year Net income Depreciation Net Cash Flow (234,000) 10,500 31,000 67,000 47,500 140,000 $ (234,000) 2 3 4 Payback period years B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $369,600 with a 6-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 147,840 units of the equipment's product each year. The expected annual income related to this equipment follows $ 231,000 Sales Costs 81,000 61,600 23,100 165,700 65,300 19,590 $ 45,710 Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (30%) Net income If at least an 10% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FVof$1, PVAof $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: n E Select Chart Amount x PV Factor Present Value Net present value