12. The payback period The payback method help mes establish and identify a maximum acceptable payback period that helps in their capital budgeting decision Cute Camel Woodcraft Company is a small firm, and treat at its managers are worried about how soon the firm will be able to reco les initial investment from Project Orga's expected future cash flows. To answer this question, Cute Camely CFO has asked that you compute the project payback period using the following expected net cash flows and auming that the cash lows are received evenly throughout nach year Year comolete the following table by computing the projects conventional payback period (nt. Vor al crede, complete the eneke tabie. Round the conventional pryback period to the nearest two decimal places. If your answer is negative use a minus sign) Year o Year 1 Year 2 Expected cash flow -55,000,000 $2,000,000 $4,250,000 $1,750,000 Cumulative cash flow 5 Conventional poytuck period Years The conventional payback period igrores the tree value of money, and this concerns Cute Camel's CFO. He has now asked you to compute Omega's discounted pwyback period, assuming the company has a cost of capital Complete the following table and perform any necessary celations (Wine Round the discounted cash flow watoes to the nearest whole dollar, and the discounted pack period to the nearest two decimplaces forced complete the entire table. If your answer is negative use a minus Year $5,000,000 Year 1 $2.000.000 Year 2 54,250,000 Cash flow Year $1,750,000 5 Discounted cash flow Cumulative discounted cash flow Discounted payback period S $ S . years Wisch version of a project's myck period should the loween vasting Project Omegn given its theoretical superiority? The regular de period The discounted payback period One the disadvantage of both back methods come to the nel present al muthed is that they to consider the value of the Cath Hoe beyond the point is time to the payback period io much valuedos e discounted stack period method to be recoge due to the theoretical come? $3.297. DSL420,521 $2,009,795 $5.140.66