A machine can be purchased for $140,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $28,000. Year 3 $64,000 Compute the machine's payback period. (Round payback period answer to 2 decimal places.) Income Year Year 1 $9,500 Initial invest Year 1 Year 2 Year 3 Year 4 Year 5 Net Income $ 9,500 23,500 64,000 35,500 94,000 Year 2 $23,500 Year 4 $35,500 Depreciation Net Cash Flow $ (140,000) $ Payback period = Year 5 $94,000 Cumulative Net Cash Flow (140,000)

A machine can be purchased for $140,000 and used for five years, yielding the following income. This income computation includes annual depreciation expense of $28,000. Compute the machine's payback period. (Round payback period answer to 2 decimal places.)