PROBLEM 3: IF YOU WANT PARTIAL CREDIT SHOW YOUR WORK. Grace-n-Mitch Inc. is considering purchasing a machine that would cost $478,800 and have a useful life of 5 years. The machine would reduce cash operating costs by $114,000 per year. The machine would have no salvage value. Grace-n-Mitch Inc, prefers a payback period of 3.5 years or less. COMPUTE THE PAYBACK PERIOD FOR THE MACHINE. WHAT DOES IT MEAN