13. The payback period The payback method helps firms establish and identify a maximuim acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Coose Metal Works Inc: Cold Goose Metal Works inci is a smalf fim, and several of its managers are womed about now 500n the firm will be able to recover its inital investment from project Delta's expeded future cast flows, To answer this question, Cold Cooses Cro has asked that you compute the project's payback period using the following expected net cash flows and assaming that the cash flows are receved evenly throughout each year. Complete the following trible and compute the project's conwentional paybock period. For full credt. connplese the entire table. (Note: Pound the convertional payback penod to two deonnal places, if your answer is negative, be sure to use a minus sign in your ariswer.) The conventional payback period ignores the time yalue of maney, and this concems Cold Goose's cro. He has now asked you to compute Deta's discosited poytack peniod; assumeng the corrpany has a 7 is cost of cigital. Complete the following table and perform any necessary calculations. round the discounted cashi flow values to the nenrest whole dollar, and the discounted payback penod to two decimal places. for fill ardit, complefe the entire table, (thote: If your answer is negotive, be sure to use a minus sign in your answer.) Which version of a project's payback penod should the CFO use when evaluating Project Delta. given its theoretical superionity? The regular payback period The discounted payback period One theoretical disadvantage of both payback methods -compared to the net present value method-is that they fail to consider the value of the cash flows beyond the point in time equal to the payback period. How truch value in this example does the discounted payback period method fal to recognire due to this theoretical deficiency? 56.16d,764 12,411,755 51,714,226 53,957,217