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6. Ine paydack perloo The payback method helps fimis establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider
6. Ine paydack perloo The payback method helps fimis establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of cold Goose-Metal Works inc:: Cold Goose Metalworks Inc. is a smallfirm, and several of its managers are worried about how soon the firm will be able to recover its initialinvestment from Project Beta's expected future cash flows. To answer this question, Cold Goose's efo has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year: Complete the following table and compute theproject's conventional-payback period: For full credit, completesthe entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative be sure to use a minus sign -in your aswer: Round the discounted cash flow values to the nearest whole dollar, an dthe discounted paxback period to kwo decimalplaces, For full credit, complete. the entire table. (Note: If your answer is negative, be sure to use a ninus signtin yourianswer.) How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? $4,529,607 $1,250,286 $1,696,274 $2,916,953
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