$$J&M Manufacturing plans on purchasing a new assembly machine for

$$$$32$ comma $00032,000$

to automate one of its current manufacturing operations. It will cost an additional

$$$$3$ comma $5003,500$

to have the new machine installed. With the new$$ machine, J&M expects to save

$$$$12$ comma $00012,000$

in annual operating and maintenance costs. The machine will last

fivefive

years with an expected salvage value of

$$$$5$ comma $0005,000.$

Question content area bottom

Part $1$

$($a$)$ How long will it take to recover the investment$($plus installation$$ cost$)?$

The payback period is

enter your response here

years. $($Round up to the nearest whole$$ number.$)$

Part $2$

$($b$)$ If$$ J&M$\text{'}$s interest rate is known to be

$1717\%,$

determine the discounted payback period.

The discounted payback period is

enter your response here

years. $($Round up to the nearest whole$$ number.$)$