A machine can be purchased for $227,000 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 $13,500 Year 2 $35,000 Year 3 $70,000 Net income Year 4 $54,500 Year 5 $112,000 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 Year Beginning Book Value Ending Book Value 1 227,000 2 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (227,000) 0 $ 1 2 (227,000) 13,500 35,000 70,000 54,500 112,000 3 70.000 4 70,000 54,500 112,000 124,500 5 236,500 Payback period = years