0 Intro A new bottling machine will cost $25,000 initially. The machine will produce after- tax cash flows of $4,000 in the first year and $9,000 each year thereafter for 4 years. Your company's cost of capital is 3%. JB Attempt 2/10 for 10 pts. Part 1 What is the payback period for this project? 3.33 Correct Year 0 1 2 3 4 5 Cash flow -25,000 4,000 9,000 9.000 9.000 9,000 Cumulative cash flow -25,000 -21,000 - 12,000 -3,000 6,000 15,000 The project has not paid back its initial costs after 3 years (the balance is still negative), but it has after 4 years the balance is positive). The payback period is thus between 3 and 4 years. Assuming that cash flows occur evenly throughout the year, the payback period is 3 +3,000 /9.000 = 3.333 years. Part 2 JB Attempt 1/10 for 10 pts. What is the discounted payback period for this project? 87400 Try again Try again See solution (-2 pts.) Problem 43 Intro You are evaluating an investment project costing $11,300 initially. The project will provide $3,000 in after-tax cash flows in the first year and $5,000 each year thereafter for 4 years. The maximum payback period for your company is 3 years. Your company's cost of capital is 11%. Part 1 IB Attempt 1/10 for 10 pts. What is the discounted payback period for this project? 2+ decimals Submit