1. CJA Company is considering purchasing a machine that would cost P243,600 and have a useful life of 6 years. The machine would reduce cash operating costs by P76,125 per year. The machine would have a salvage value of P60,900 at the end of the project. The discount rate is 10%. What is the discounted payback period for the machine?
2. CJA Fitness Center is considering an investment in some additional weight training equipment. The equipment has an estimated useful life of 5 years with no salvage value at the end of 5 years. CJA expects net annual cash inflows of P54,000 from this equipment. CJA's internal rate of return on this equipment is 14%. CJA's discount rate is also 14%. What is the payback period on this equipment?