A machine can be purchased for $205,000 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 2 Year 3 Year 4 Year 5 Net income $14,000 $36,000 $76,000 $46,000 $138,000 Year 1 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. Accumulated Beginning Book Value (40% of Book Depreciation at Value) Year-End Year Ending Book Value 1 2 3 4 5 Annual Cash Flows Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow $ (205,000) 0 1 2 $ (205,000) 14.000 36,000 76,000 46.000 138,000 3 76,000 46,000 138,000 76,000 122.000 4 260,000 5 Payback period years