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10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider
10. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: initial investment from Project Sigma's expected future cash flows. To answer this question, Cold Goose's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are reived eventy throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table conventional payback period to the nearest two decimal places. If your answer is negative use a minus sign.) credit, complete the entire table. (Note: If your answer is negative use a minus sign.) Which version of a project's payback period should the CFO use when evaluating Project Sigma, given its theoretical superiority? The regular payback period The discounted payback period flows beyond the point in time equal to the payback period. How much value does the discounted payback period method fail to recognize due to this theoretical deficiency? $1,645,380$3,132,983$1,314,801$4,827,198
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