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A machine can be purchased for $70,000 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 $4,600 Year 2 $11,600 Year 3 $34,000 Year 4 $17,300 Year 5 $46,400 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 Cumulative Cash Flow Flow $ (70,000) $ (70,000) 0 1 $ 2 4,600 11,600 34,000 3 4 17,300 46,400 5 Payback period = A machine can be purchased for $272,000 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 $12,500 Year 2 $50,000 Year 3 $62,000 Year 4 $58,000 Year 5 $134,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. Accumulated Beginning (40% of Book Depreciation at Book Value Value) Year-End Year Ending Book Value 1 2 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (272,000) 0 $ (272,000) 12,500 1 2 50.000 62.000 3 4 58,000 5 134,000 Payback period = I years