Malive Park Department is considering the purchase of a new machine. The cost of the machine will be $119,000 Working capital associated with the purchase of the new machine is $10,000 and is expected to be fully recovered at the end of the machine's useful life. The annual cost savings if the new machine is acquired 'will be $35,000. The machine will have a 5 - year useful life, at 'which time the salvage value is expected to be zero. Malive Park uses straight-line depreciation with zero terminal disposal value for this type of purchase. Malive Park has a 12% required rate of return and pays taxes at a rate of 30%. What is the payback period for the investment? 4.08 years 5.26 years 4.85 years 3.76 years Phoenix Company is considering the purchase of a new machine for use in its production process. The cost of the machine will be $375,000. The annual direct material and direct labor savings due to increased operating efficiency is as follows: Year 1 $127,000 Year 2 $108,000 Year 3 $92,000 Year 4 $56,000 Year 5 $35,000 The machine will have a 5-year life, at which time the terminal disposal value is expected to be zero. Phoenix Company is in a 40% tax bracket and has a 10% required rate of return. What is the payback period on this investment in years? 2.91 years 4.12years 4.49 years