A machine can be purchased for $218,000 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 $24,500 Year 2 $29,000 Year 3 $65,000 Year 4 $40,000 Year 5 $115,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) X Answer is complete but not entirely correct. Year Ending Book Value 1 Computation of Annual Depreciation Expense Beginning Annual Depr. Accumulated Book (40% of Book Depreciation at Value Value) Year-End 218,000 87,200 87,200 130,800 52,320 139,520 78,480 31,392 170,912 47,088 18,835 189,747 28,253 11,301 201,048 2 3 130,800 78,480 47,088 28,253 16,952 4 5 Annual Cash Flows Year Depreciation Net Cash Flow Cumulative Cash Flow 0 Net income $ (218,000) 24,500 29,000 65,000 40,000 115,000 87,200 52,320 2 $ (218,000) (106,300) (24,980) 71,412 130,247 256,548 3 111,700 81,320 96,392 58,835 126,301 31,392 4 18,835 11,301 5 Payback period = 0.259 years