4 A machine can be purchased for $259,000 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 5 $23,000 $ 26,000 $57,000 $38,000 $123,000 Year 2 Year 3 Year 4 2 points Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) eBook Hint Year Beginning Book Value Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Ending Book Value 1. Print 23,000 26,000 2 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (259,000) $ 0 1 2 (259,000) 23,000 26,000 57,000 38,000 123,000 3 4 5 Payback period = years