Exercise 24-4 Payback period; accelerated depreciation LO P1 A machine can be purchased for $282,000 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 Year 4 Years Net Income $24,500 $44,000 $68,000 $51,000 $123,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expono Annual Depr. (40% Accumulated of Book Value) Depreciation at Year End Boginning Book Value Year Ending Book Value 1 2 3 4 5 Ann Cash Flows Year Not income Depreciation Net Cash Flow Cumulative Cash Flow 5 (262,000) 5 0 1 2 3 4 (282,000) 24,500 44,000 68,000 51,000 123,000 68,000 51,000 123,000 68,000 119,000 242,000 5 Payback period years