A machine can be purchased for $296,000 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. Net income Year 1 $20,000 Year 2 $41,000 Year 3 $64,000 Year 4 $59,000 Year 5 $135,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Answer is complete but not entirely correct. Year Computation of Annual Depreciation Expense Beginning Annual Depr. Accumulated Book (40% of Book Depreciation at Value Value) Year-End 296,000 118,400 118,400 177,600 71,040 189,440 106,560 42,624 232,064 63,936 25,574 257,638 38,362 38,362 296,000 Ending Book Value 177,600 106,560 63,936 38,362 - 2 3 4 Annual Cash Flows Depreciation Net Cash Flow Year Net income $ (296,000) 20,000 41,000 64,000 59,000 135,000 118,400 71,040 42,624 25,574 38,362 138,400 112,040 106,624 Cumulative Cash Flow $ (296,000) 138,400 250,440 357,064 84,574 173,362 441,638 615,000