Problem Set Page 4 of 13 Part 2: You are analyzing an investment in machinery for your firm's factory. The relevant cash flows are provided in the table below. a. Complete this schedule as support for computing the payback period and the discounted payback period of the investment options. Assume your firm has a WACC of 10%. (6 points) Periods Cash Flows 0 1 $(220,000) 107,400 2 117,000 3 93,000 4 112,600 Cumulative Cash Flows PV of Cash Flows Cumulative PV of Cash Flows b. Compute the payback period of the investment. (4 points) Payback Period Supporting Calculations Required: Your Answer C Compute the discounted payback period of the investment. (4 points) Discounted Payback Period Supporting Calculations Required: Your Answer Problem Set d. Page 5 of 13 Your firm requires an investment of this type to payback the initial investment in 2.5 years on both a regular and discounted basis, Would this investment be acceptable based on the criterion? Briefly explain. (2 points)