A machine can be purchased for $253,000 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 $12,000 Year 2 $35,000 Year 3 $62,000 Year 4 $51,000 Year 5 $126,000 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 1 2 2 4 ) Annual Cash Flows Depreciation Net Cash Flow Year Net income Cumulative Cash Flow $ (253,000) $ 0 1 2 (253,000) 12,000 35,000 62,000 51,000 126,000 4 LO Payback period = years