be purchased for $277,000 and used for five years, yielding the following net incomes. In projec ng depreciation is applied using a five-year life and a zero salvage value. Year 1 $25,000 Year 2 $45,000 Year 3 $57,000 Year 4 $46,500 Year 5 $133,000 machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Answer is complete but not entirely correct. Ending Book Value Computation of Annual Depreciation Expense Annual Depr. Accumulated Beginning (40% of Book Depreciation at Book Value Value) Year-End 277 000 110.800 110.800 166.200 66.480 177 280 99 720 39 888 217,168 59,832 23.933 241,101 35,899 14.360 X 255 461 166,200 99,720 59,832 35,899 21,539 Annual Cash Flows Cumulative Net income nenreriation Natinash Flow Annual Cash Flows Year Net income Depreciation Net Cash Flow 0 1 110 800 135,800 Cumulative Cash Flow $ (277,000) (141, 200) (29,720) 67,168 137,601 284,961 2 66 480 $ (277.000) 25,000 45,000 57,000 46,500 133,000 111.480 3 39,888 4 23933 96,888 70,433 147,360 5 14 360 Payback period = 2.192 X