Managerial Accounting.

A machine can be purchased for $239,000 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 Net income $24,500 Year 2 $35,000 Year 3 $ 74,000 Year 4 $41,500 Year 5 $103,000 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 Year Ending Book Value 1 2 3 4 6 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (239,000) 1 N $ (239,000) 24,500 35,000 74,000 41,500 103,000 3 4 6 Payback period = years