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PLEASE DO PROVIDE EXCEL SCREENSHOTS. Following is a table that shows the expected cash flows of a machine that QQQ Inc. is currently evaluating for
PLEASE DO PROVIDE EXCEL SCREENSHOTS.
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.
Years | Expected CF | PV of CF Using the firm's required rate of return, r |
0 | $(10,000) | $(10,000) |
1 | 6,000 | 5,455 |
2 | 3,000 | 2,479 |
3 | 1,000 | 751 |
4 | 5,000 | 3,415 |
Compute both the traditional payback period and the discounted payback period.
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