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? $ 126,000 Sales Costs: Manufacturing Depreciation on machine Selling and administrative expenses Income before taxes Income tax (40%) Net income $64,000 9,000 42,000 (115,000) $ 11,000 (4,400) $ 6,600 Multiple Choice 1.54 year. 0 0 3.46 years. 8.18 years 0