Computation of Annual Depreciation Expense Year Beginning Book Value Annual Depr. (40% of Book Value) Accumulated Depreciation at Year End Ending Book Value 1 2 N 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (209,000) 0 $ 1 1 2 2 (209,000) 12,500 34,000 58,000 47,000 121,000 3 4 or 5 Payback period = years A machine can be purchased for $209,000 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 Year 2 Year 3 Year 4 Year 5 Net Income $12,500 $34,000 558,000 $47,000 $121, eee Compute the machine's payback period (ignore taxes) (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Beginning Book Value Ending Book Value Year 1 2 3 4 5