A machine can be purchased for $245,000 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 $21,000 Year 2 $39,000 Year 3 $73,000 Year 4 $44,500 Year 5 $105,000 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 Beginning Book Value Year Ending Book Value Annual Cash Flows Depreciation Net Cash Flow Year Net income Cumulative Cash Flow $ (245,000) $ (245,000) 21,000 39,000 73,000 44,500 105,000 73,000 44,500 105,000 73,000 117,500 222,500 Payback period = years