4.

A machine can be purchased for $249,000 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 3 Year 4 Year Net income $14,580 $26,688 3,080 $58,5 8e $132,80e Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) of Annual Depreciation Expense Beginning Book Value Annual Dep. (40% of Book Value) Accumulated ciation at Year-End Ending Book Value Annual Cash Flows Cumulative Cash Flow $ (249,000) Year Net income Depreciation Net Cash Flow 0 S (249,000) 14,500 26,000 63,000 58,500 132,000 4 5 Payback period years