Year 1 $24,000 Year 2 $42,000 Year 3 $80,000 Year 4 $44,000 Year 5 $115,000 Net income Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) 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 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (252,000) 0 $ 1 2 (252,000) 24,000 42,000 80,000 44,000 115,000 3 80,000 44,000 4 80,000 124,000 239,000 5 115,000 Payback period = years