A machine can be purchased for $277,000 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 Net income $13,500 Year 2 $25,000 Year 3 $73,000 Year 4 $42,000 Year 5 $104,000 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 5 Annual Cash Flows Depreciation Net Cash Flow Year Net income Cumulative Cash Flow $ (277,000) 0 $ 1 2 (277,000) 13,500 25,000 73,000 42,000 104,000 3 4 5 5 Payback period years