Question - A machine can be purchased for $213,000 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 incomes
Year 1 - $ 13,000
Year 2 - $ 48,000
Year 3 - $ 63,000
Year 4 - $ 51,000
Year 5 - $ 108,000
Compute the machine's payback period (ignore taxes).