Question: Following is a table that shows the expected cash flows of a machine that QQQ Inc. is currently evaluating for possible purchase. Both the expected

Following is a table that shows the expected cash flows of a machine that QQQ Inc. is currently evaluating for possible purchase. Both the expected annual cash flows (CF) and the present values (PV) of the cash flows are shown in the table.

Compute both the traditional payback period and the discounted payback period.

PV of CF Using the Firm's Required Rate of Return, r Year Expected CF S(10,000) 6,000 3,000 1,000 5,000 $(10,000) 5,455 2,479 751 3,415

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