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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

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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 income $22,500 $36,000 $79,000 $52,500 $109,000 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 $ (223,000) 0 1 2 $ (223,000) 22,500 36.000 79,000 52,500 109,000 3 4 5 Payback period years

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