A manufacturing firm is making auto parts. The machine operators do the packaging and fill the shipping boxes. Each box should contain 60 parts, but the operators fill the boxes by eye, so the average parts per box is 63. Each auto part costs $1. The company realizes that they are wasting parts by overfilling the boxes and decides to automate the packaging which reduces the average parts per box to 60. The equipment would cost $65,000 and SL depreciation with 7-year depreciable life and $10,000 salvage value would be used. Cost of maintaining the equipment is $8,000 annually. The firm manufactures 800K auto parts each year. The combined federal and state incremental tax rate is 30%. Assume a 7-year analysis period and MARR of 10%. 1. What is the after-tax present worth? 2. What is the after-tax payback period? (No-return payback period)