(Calculating the discounted payback period) The Callaway Cattle Company is considering the construction of a new feed-handling system for its feedlot in Abilene, Kansas. The new system will provide annual labor savings and reduced waste totaling $200,000, and the initial investment will be only

$500,000. Callaway’s management has used a simple payback period method for evaluating new investments in the past but plans to calculate the discounted payback period to analyze the investment. Where the appropriate discount rate for this type of project is 10 percent, what is the project’s discounted payback period?