Kathleen Dancewear Co. has bought some new machinery at a cost of $4,100,000. The impact of the new machinery will be felt in the additional annual cash flows of $1,200,000 over the next six years. If the cost of capital is 13%, what is the discounted payback period for this project? If its acceptance period is 4 years, will this project be accepted? round to nearest.
4 years; yes it will be accepted
4 years; no it will not be accepted
5 years; yes it will be accepted
5 years; no it will not be accepted
None of these