4. What is the discounted payback period for the machine in the preceding problem above, if the discount rate is 10%? Year 1 2 3 4 5 6 7 Cash Inflow $ 1,345 x 9091 2,605 x .8264 4,509 x .7513 5,219 x .6830 4,481 x .6209 3,823 x .5645 3,500 x .5132 $1,222 + $2,152 + $3,387 + $3,564 + $2,782 + $2,158 + $1,796 = $13,497 $13,497 - 12,000 $1,497 3. A new machine will provide the following net annual cash inflows. If the cost of the machine is $12,000, what is the payback period? Year Cash Inflow 1 $ 1,345 - $10,655 2. 2,605 - $8,050 3 4,509 - $3,541 4 5,219 - $1,678 5 4,481 - $6,159 6 3,823 - $9,982 7 3,500 - $13,482 (3,541 5219)-.6784 = 3.68