A machine can be purchased for $272,000 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 $13,500 Year 2 $39,000 Year 3 $59,000 Year 4 $56,500 Year 5 $106,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value 1 2 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow 0 $ (272,000) $ (272,000) 1 13,500 2 39,000 3 59,000 4 56,500 5 106,000 59,000 59,000 56,500 115,500 106,000 221,500 Payback period years