A machine can be purchased for $280,000 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 $12,500 Year 2 $39,000 Year 3 $60,000 Year 4 $56,000 Year 5 $111,000 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 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (280,000) 0 $ 1 2 (280,000) 12,500 39,000 60,000 56,000 111,000 4 Payback period = years