A machine can be purchased for $274,000 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 $12,500 Year 2 $34,000 Year 3 $50,000 Year 4 $54,500 Year 5 $125,000 Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Answer is not complete. Ending Book Value Computation of Annual Depreciation Expense Beginning Annual Depr. Accumulated Book (40% of Book Depreciation at Value Value) Year-End 274,000 109,600 109,600 164,400 65,760 208,240 98,640 39,456 247,696 59,184 23,673 271,369 35,511 14,204 X 285,573 164,400 98,640 59,184 35,511 21,307 Annual Cash Flows Depreciation Net Cash Flow Year Net income $ (274,000) 12,500 34,000 Cumulative Cash Flow $ (274,000) 50,000 54,500 125,000 109,600 65,760 39,456 23,673 14,204 89,456 78,173 139,204 89,456 167,629 306,833 Payback period = years