A machine can be purchased for $290,000 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 $34,000 Year 3 $75,000 Year 4 $55,000 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 Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year-End Ending Book Value Annual Cash Flows Depreciation Net Cash Flow Year 0 Cumulative Cash Flow $ (290,000) Net income $ (290,000) 11,000 34,000 75,000 55,000 117,000 75,000 55,000 117,000 75,000 130,000 247,000 Payback period = 1 years