A company is planning to purchase a machine that will cost $28,800, have a six-year life, and be depreciated over a three-year period with 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? Sales Cost $114,000 Depreciation on machine Selling and administrative expenses $52,800 4,800 38,000 (95,600 $18,400 (5.520) $12,880 Income before taxes Income tax Net income O 3.37 year 6.00 years O 163 years O 447 years O 2.24 years 21. An additional cost incurred only if a company pursues a particular course of action is a(n): Period cost. Pocket cost. Discount cost. Incremental cost. Sunk cost