A machine can be purchased for $288,000 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 $20,500 Year 2 $27,000 Year 3 $80,000 Year 4 $48,000 Year 5 $107,000 Net income 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 288,000 Year Ending Book Value Annual Cash Flows Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (288,000) $ (288,000) 20,500 27,000 80,000 48,000 107,000 80,000 48,000 107,000 80,000 128,000 235,000 Payback period = years