A machine can be purchased for $278,000 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 $21,500 Year 2 $43,000 Year 3 $65,000 Year 4 $58,500 Year 5 $117,000 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 Year Beginning Book Value Ending Book Value 1 2 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (278,000) 0 1 2 $ (278,000) 21,500 43,000 65,000 58,500 117,000 3 4 Payback period years