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. Net income Year 1 $14,500 Year 2 $33,000 Year 3 $67,000 Year 4 $39,000 Year 5 $139,000 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 Annual Cash Flows Year Depreciation Net Cash Flow Cumulative Cash Flow S (282,000) 0 Net income $ (282,000) 14,500 33,000 67,000 39,000 139,000 67,000 39,000 139,000 67.000 106,000 245,000 Payback period = years B2B Co. is considering the purchase of equipment that would allow the company to add a new product to its line. The equipment is expected to cost $377,600 with a 10-year life and no salvage value. It will be depreciated on a straight-line basis. The company expects to sell 151,040 units of the equipment's product each year. The expected annual income related to this equipment follows. $ 236,000 Sales Costs Materials, labor, and overhead (except depreciation on new equipment) Depreciation on new equipment Selling and administrative expenses Total costs and expenses Pretax income Income taxes (40%) Net income 83,000 37,760 23,600 144,360 91,640 36,656 54,984 $ If at least an 9% return on this investment must be earned, compute the net present value of this investment. (PV of $1, FV of $1, PVA of $1, and FVA of $1) (Use appropriate factor(s) from the tables provided.) Chart Values are Based on: Select Chart Amount x PV Factor = Present Value Net present value