Chad’s Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would generate $2,650 in annual savings of direct labor costs over its 20-year...

Chad’s Chocolates is considering the purchase of a new candy press. The machine under consideration costs $17,550 and would generate $2,650 in annual savings of direct labor costs over its 20-year life. At the end of the 20 years, the candy press could be sold for $500. Chad’s uses a 16% discount rate. What is the press’s payback period?