Return to the example of The Cheddar Cheese Company Ltd in the previous chapter where we compared the simple payback period for three projects that involved investment in a packing machine. Using a spreadsheet and the following layout, calculate the discounted payback periods for each project. Then compare them with your earlier results and make recommendations to the directors.

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Machine X Cash flow Discount Present factor value Year 10% 0 1 2 3 4 5 Cumulative cash flow