A machine can be purchased for $286,000 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 $11,000 Year 2 $27,000 Year 3 $55,000 Year 4 $58,500 Year 5 $124,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value 1 286,000 114,400 114,400 171,600 2 171,600 68,640 102,960 345 102,960 41,184 109,824 61,776 61,776 24,710 134,534 37,066 37,066 37,066 171,600 0 Annual Cash Flows Cumulative Year Net income Depreciation Net Cash Flow 0 $ (286,000) Cash Flow $ (286,000) 012345 11,000 114,400 27,000 68,640 55,000 41,184 96,184 96,184 58,500 24,710 83,210 179,394 124,000 37,066 161,066 340,460 Payback period = years