Nike is looking to invest in a new running hat that will cost $390,000 in initial funds. The following profits for this project can be found in the following cash flow statement. What is the discounted payback period for this machine at a 13.5% interest rate ? YEAR Amount 0 $ (390,000.00) 1 30,000.00 2 $ 37,500.00 3 $ 46,875.00 4 $ 58,593.75 5 07 $ 73,242.19 6 LO $ 91,552.73 7 $ 114,440.92 8 $ 143,051.15 9 $ 178,813.93 10 $ 223,517.42 11 $ 279,396.77 12 $ 349,245.97 13 $ 436,557.46 14 $ 545,696.82 15 $ 682,121.03 10-11 7-8 9-10 11-12 12-13 Nike has hired an external consultant like Crowe to provide a solution to their warehousing problem now that they sell so much in Nike.com. The project will cost the company $3,600,000 now, require $350,000 in support in year 1, and $220,000 in year 2. The company expects a benefit of $400,000 in year 1 increasing by 6% per year for the foreseeable future. What is the Simple Payback Period for this project? 6-7 7-8 8-9 4-5 5-6