A company is planning to purchase a machine that will cost $54,000 with a six-year life and no salvage value. The company expects to sell the machine's output of 3,000 units evenly throughout each year A projected income statement for each year of the asset's life appears below What is the payback period for this machine? $ 135,000 Sales Costs Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (40%) Net Income $67,000 9,000 45,000 (121,000) $ 14,000 (5,600) $ 8,400