A machine can be purchased for $272,000 and used for five years, ylelding the following net incomes. In projecting net incomes, double-declining depreciation is applied using a five year life and a zero salvage value. Year 2 Year 2 Year Year 4 Year 5 Net Income $13,000 $35.000 $58,000 $49,000 $112.000 Compute the machine's payback period ignore taxes) (Round payback period answer to 3 decimal places.) Computation of Annual Depreciation Expense Beginning Book Value Annual Dept (40% of Book Value Accumulated Depreciation at Year-End Ending Book Value 1 3 4 5 Annual Cash Flow Depreciation Net Cash Flow Year Cumulative 5 0272.000) 1 G7200 135 000 000 300 3 Net income $13,000 $35,000 $58,000 $49,000 $112,000 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 ces 5 Annual Cash Flows Year Net Income Depreciation Net Cash Flow Cumulative Cash Flow $ (272,000) 0 $ 1 2 (272.000) 13.000 35.000 58.000 49,000 112 000 4 5 Payback period years