Check my work 4 A machine can be purchased for $216,000 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. 2 points Year 1 Net income $20,500 Year 2 $43,000 Year 3 $59,000 Year 4 $58,500 Year 5 $ 107,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) eBook Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year-End Year Beginning Book Value Ending Book Value Hint 1 2 Print 3 4 5 Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow S (216,000) 0 $ (216,000) 20,500 1 2 3 43,000 59,000 4 58,500 107,000 5 Payback period = years