The cost of a new machine is $37,500. The machine has a 5-year service life and no salvage value at the end of five years. The annual cash inflow will be 18% of the cost of the machine. The payback will occur: A. 5.25 years B. 5.56 years C. 5.84 years D. 6.25 years E. 6.67 years

A firm is evaluating a proposal which has an initial investment of $46,000 and has cash flows of $16,000 in year 1, $20,000 in year 2, $15,000 in year 3 and $10,000 in year 4. The payback period of the project is: A. more than 1 year, 3 months but less than 1 year, 9 months. B. more than 1 year, 9 months but less than 2 years, 3 months. C. more than 2 years, 3 months but less than 2 years, 9 months. D. more than 2 years, 9 months but less than 3 years, 3 months. E. more than 3 years, 3 months.

The total cost of a new machine with installation is $32,500. The machine has a 6-year service life and no salvage value at the end of six years. The annual cash inflow will be $6,500. If the discount rate is 5.0 percent, what is the discounted payback period? A. 5.00 years B. 5.40 years C. 5.64 years D. 5.90 years E. 6.06 years