A machine can be purchased for $214,000 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. Net income Year 1 $10,500 Year 2 $33,000 Year 3 $61,000 Year 4 $52,500 Year 5 $135,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Beginning Book Value Year Ending Book Value 1 N 3 3 4 5 Annual Cash Flows Depreciation Net Cash Flow Year Net income Cumulative Cash Flow S (214,000) 0 $ 1 2 (214,000) 10,500 33,000 61,000 52,500 135,000 3 4 5 Payback period = years