WACC 12% What is the discounted payback period?

1: XYZ Corp is investing in a machine which costs $100 (million) today. The machine is expected to generate net cashflow of $22 at the end of Year 1 . The net cashflow will increase at the rate of 25% per year till the end of year 5, as shown below. Answer the following questions: (a) First compute the future cashflows. Lay them in a table similar to Practice Problem on page 2 above. Time Cash Flow 2 4 -100