A machine can be purchased for $265,000 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 $22,000 Year 2 $28,000 Year 3 $53,000 Year 4 $42,500 Year 5 $130,000 Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. Accumulated Beginning (40% of Book Depreciation at Book Value Value) Year-End Year Ending Book Value Annual Cash Flows Year Depreciation Net Cash Flow Cumulative Cash Flow $ (265,000) Net income $ (265,000) 22,000 28,000 53,000 42,500 130,000 Payback period = years