A machine can be purchased for $ 150,000 and used for 5 years, yielding the following net incomes. In projecting net incomes, double-declining balance depreciation is applied, using a 5-year life and a zero salvage value. Compute the machine’s payback period (ignore taxes).

(Round the payback period to threedecimals.)

Year I Year 2 Year 3 Year 4 Year 5 Net incomes.$10,000 $25,000 $50.000 $37,500 $100.000