Intro A new bottling machine will cost $23,000 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 6%. 8 | Attempt 1/3 for 10 pts. Part 1 What is the payback period for this project? 3.11 Correct Year 0 1 2 3 4 5 Cash flow -23,000 4,000 9,000 9,000 9,000 9,000 Cumulative cash flow -23,000 -19,000 -10,000 -1,000 8,000 17,000 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+1,000 / 9,000 = 3.111 years. Part 2 B "Attempt 1/3 for 10 pts. What is the discounted payback period for this project? 2+ decimals Submit