A machine can be purchased for $223,000 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 1 Year 2 Year 3 Year 4 Year 5 Net $23,500 $37,000 $60,000 $46,500 $105,000 income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Answer is complete but not entirely correct. Computation of Annual Depreciation Expense Annual Depr. (40% of Book Value) Accumulated Beginning Book Value Ending Book Value Year Depreciation at Year-End 1 223,000 89,200 89,200 133,800 133,800 53,520 142,720 80,280 3 80,280 32,112 174,832 48,168 48,168 19,267 194,099 28,901 28,901 11,560 X 205,659 17,341 Annual Cash Flows Cumulative Cash Flow Year Net income Depreciation Net Cash Flow $ (223,000) $ (223,000) 1 23,500 89,200 112,700 (110,300) 37,000 53,520 90,520 (19,780) 60,000 32,112 92,112 72,332 4 46,500 19,267 65,767 138,099 105,000 11,560 116,560 254,659 Payback period 2.215 years 2. 3.