Exercise 24-4 Payback period; accelerated depreciation LO P1 A machine can be purchased for $263,000 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 $19,000 Year 2 $38,000 Year 3 $67,000 Year 4 $51,000 Year 5 $109,000 Net income 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 Year Beginning Book Value Ending Book Value Annual Cash Flows Year Net income Depreciation Net Cash Flow Cumulative Cash Flow $ (263,000) 0 $ (263,000) 19,000 38,000 67,000 51,000 109,000 Payback period = years