A machine can be purchased for $60,000 and used for five years, yielding the following net incomes. In projecting net incomes, straight-line depreciation is applied using a five-year life and a zero salvage value.

Year 1 $3,900 Year 2 $9,900 Year 3 $32,000 Year 4 $14,700 Year 5 $39,600 Net income Compute the machine's payback period (ignore taxes). (Round your intermediate ca round payback period answer to 3 decimal places.) Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow 0 $ 1 $ $ 3,900 $ 2 (60,000) $ 15,900 21,900 44,000 26,700 51,600 9,900 32,000 14,700 39,600 3 (60,000) (44,100) (22,200) 21,800 48,500 100,100 12,000 12,000 12,000 12,000 12,000 3 4 5 Payback period =