A machine can be purchased for $274,000 and used for five years, ylelding the following net incomes. In projecting net incomes. double-declining depreciation is applied using a five year life and a zero salvage value. YE22CE1 Net Income $23,500 $35,000 $74,000 $47,500 $132,000 Compute the machine's payback period (Ignore taxes). (Round payback period answer to 3 decimal places.) Answer is complete but not entirely correct. Computation of Annual Depreciation Expense Beginning Annual Depr. Acumulated Ending Book (40% of Book Depreciation at Book Value Value Value) Year-End 274,000 109,600 109,600 164,400 164,400 65,760 175,380 10,980 10,960 39,456 214,816 (28.490) 29,592 244,408 (58,088) 29,592 274.000 (87.680) Annual Cash Flows Depreciation Net Cash Flow Net income Cumulative Cash Flow $ $ 274,000) 23,500 35,000 74,000 47.500 132.000 109.600 65,780 39.458 29,592 29,592 133,100 100,760 113,456 77.092 161.592 (274.000) (141.900) (51.140) 62.316 139,408 301.000 Payback period 2.451 3 years