A machine can be purchased for $297,000 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 $22,500 Year 2 $31,000 Year 3 $80,000 Year 4 $55,500 Year 5 $119,000 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 O Cumulative Cash Flow $ (297,000) S Net income (297,000) 22,500 31,000 80,000 55,500 119,000 80,000 55,500 119,000 80,000 135,500 254,500 Rectangular Snip Payback period = years years