A cannery is considering installing an automatic

case$-$sealing machine to replace current hand

methods. If they purchase the machine for $$5000$

in June, at the beginning of the canning season, they

will save $$500$ per month for the $4$ months each year

that the plant is in operation. Maintenance costs of

the case$-$sealing machine are expected to be negli$-$

gible. The case$-$sealing machine is expected to be

useful for five annual canning seasons and then will

have no salvage value. What is the payback period?

MARR $=12$ percent per year compounded monthly

PLEASE SHOW EQUATIONS USED