The Easton manufacturing Company is looking to replace its conveyor belt system. A new system will cost $345,000, and will result in cost savings of $220,000 in the first year, followed by savings of $100,000 per year over the following 3 years. If the firm’s cost of capital is 9%, the discounted payback period for this project is closest to
2.40 years.
2.25 years.
2.58 years.
2.76 years.