er 11 Homework A Suvod 7 A machine can be purchased for $300,000 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 Year 1 Year 2 Year 3 Year 4 Year 5 Net income $24,000 $36,000 $61,000 $44,500 $138,000 Compute the machine's payback period (ignore taxes). (Round payback period answer to 3 decimal places.) ok Computation of Annual Depreciation Expense Annual Depr. (40% Accumulated of Book Value) Depreciation at Year End Year Beginning Book Value Ending Book Value int 1 2 int 3 4 5 Annual Cash Flows Depreciation Net Cash Flow Year Net Income Cumulative Cash Flow $ (300,000) 0 $ 1 2 (300,000) 24,000 36,000 61,000 44,500 138,000 3 4 61,000 44,500 138,000 61,000 105,500 243,500 5 Payback period years