Flowers Unlimited is considering purchasing an additional delivery truck that will have a seven-year useful life. The new truck will cost $44,500. Cost savings with this truck are expected to be $13,600 for the first two years, $9,400 for the following two years, and $5,300 for the last three years of the truck’s useful life.
What is the payback period for this project? (Round answer to 2 decimal places, e.g. 52.75.)
What is the discounted payback period for this project with a discount rate of 10 percent? (Do not round discount factors. Round answer to 2 decimal places, e.g. 52.75.)