Discounted payback period Netty’s Cow Barn, Inc. is considering a new milking system. They have calculated the NPV of this project to be $68,524.

The project is an 8-year project where each year is expected to generate the same NCF. The project requires no addition to NWC, so the only NINV is the NCS on the machine itself, which is $35,563. The machine will be depreciated straight line until zero salvage. What is the project’s discounted payback if the firm’s WACC ¼ 8 %?