Question: A new bottling machine will cost $24,000 initially. The machine will produce after-tax cash flows of $4,000 in the first year and $9,000 each year

A new bottling machine will cost $24,000 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%.

1. What is the payback period for this project?

2. What is the discounted payback period for this project?

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