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? What is the discounted payback period if the discount rate is 10%?

Year Cash Inflow

1 $ 1,345

2. 2,605

3 4,509

4 5,219

5 4,481

6 3,823

7 3,500