I need help with understanding the payback period and discounted payback period.

CoursHeroTranscribedText: Western Cola is considering the purchase of a special-purpose bottling machine for $70,000. It is expected to have a useful life of 4 years with no terminal disposal value. The plant manager estimates the following savings in cash operating costs: (Click the icon to view the savings in cash operating costs.) Western Cola uses a required rate of return of 20% in its capital budgeting decisions. Ignore income taxes in your analysis. Assume all cash flows occur at year-end except for initial investment amounts. Present Value of $1 table Present Value of Annuity of $1 table Future Value of $1 table Future Value of Annuity of $1 table Read the requirements. 1. Net present value. (Use factor amounts rounded to three decimal places. Round your answers to the nearest whole dollar. Use a minus sign or parentheses for a negative net present value.) The net present value is i Requirements - X i Data Table - X Calculate the following for the special purpose bottling machine: Year Amount 1. Net present value 2. Payback period Year 1 $ 30,000 3. Discounted payback period Year 2 25,000 4. Internal rate of return (using the interpolation method) Year 3 20,000 5. Accrual accounting rate of return based on net initial investment (Assume straight-line depreciation. Use the average annual savings in cash operating Year 4 15,000 costs when computing the numerator of the accrual accounting rate of $ 90,000 return.) Total Print Done Print Done