2 part question

Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Be Hamsters CFO nes asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash rows are received evtly throughout each year Complete the following table and compute the project's conventional payback period. Round the payback pened to the nearest two decina pieces de sure to complete the entire table-even if the values exceed the point at which the cost of the project is recovered Year 2 54.250,000 Year 51.750.000 Year 1 $2,000,000 -$3,000,000 Year o -$5,000,000 $5.000.000 1.75 years Expected cash flow Cumulative cash flow Conventional payback period: The conventional payback period ignores the time value of money, and this concerns te Hamster CFO, as now you to computer discounted payback period, assuming the company has a 7% cost of capital Complete the following table and perform any necessary calculations. Round the discounted cash flow valves to the nearest whole ofer, discounted payback period to the nearest two decimal places. Again, be sure to complete the entire table-even if the values exceed the point at which the cost of the project is recovered Year o Year 1 Year 2 Year 3 Cash flow $5,000,000 $2,000,000 54,250,000 $1,750,000 Discounted cash flow $5,000,000 $1.869,158 Cumulative discounted cash now $5,000,000 $3130,841 1 84 years Discounted payback period: Which version of a project's payback period should the CFO use when evaluating Project Sigma, given ts theoretical superiors? The discounted payback period The regular payback period