A machine can be purchased for $243,000 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 $38.000 Year 4 $42.000 $67,000 Year 5 $130,000 Net income Compute the machine's payback period ignore taxes). (Round payback period answer to 3 decimal places.) w Beginning Book Value Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value Depreciation at Year End Ending Book Value Annual Cash Flows Depreciation Net Cash Flow Cumulative Cash Flow 5 (243,000) Year Net income 0 5 (243,000) 13,500 38,000 67,000 42,000 130,000 67,000 42,000 130,000 67,000 109,000 239,000 Payback period years