A machine can be purchased for $236,000 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 $15,000 Year 2 $50,000 Year 3 $72,000 Year 4 $37,500 Years $120,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Beginning Book Value Computation of Annual Depreciation Expense Annual Dept. (40% Accumulated of Book Value) Depreciation at Year End Ending Book Value Annual Cash Flows Depreciation Net Cash Flow Net Income Cumulative Cash Flow $ 276.000) $ 236,000) 15.000 50,000 72.000 37 500 120,000 72.000 37.500 120.000 72.000 109,500 229.500 Payback period years