6. The payback period Aa Aa The payback method helps firms esablish and identil y a maximum acceptable payback period that helps in their capital budgeting decisions Consider the case of Cold Goose Metal Works Inc.: Goose Metal Works 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 Omega'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 and assuming that the cash flows are received evenly throughout each year cash flows Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Year O Year 1 Year 2 Year 3 Expected cash flow Cumulative cash flow 4,500,000$1,800,000 $3,825,000 $1,575,000 Conventional payback period: gnores the time volue of money, and this concerns Cold Goose's CFo. He has now asked you to compute omega's discounted payback period, assuming the company has a 9% cost of capital. omplete the tollowing table and perform any necessary cakculations. Round the discounted cash flow values to the