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6. The payback period The parback methed helos firms establish and identiry a maximam atceptable payback period that helps in their capatal budgetiog deosors. Consider

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6. The payback period The parback methed helos firms establish and identiry a maximam atceptable payback period that helps in their capatal budgetiog deosors. Consider the case of Bhue Hamster Manufacturing inc: Bue tamster Mahufacturing Inc, is a snall firm, and several of its mansgers are worried about haw soon the firmi will be able to recever its initial investment from Project Sigmar expected future cash nows. To answer this question, Blue Hamster's Cro bas asked that you comevte the proget's payback period using the folowing expected net cash flows and assuming that the cash flows are rectived evenly throwherit each veat: Complete the foliowing table and cornpute the project sconventional paybock period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. Ir vour answer is negative, be sure to use a minus sign in your answer) The conventional paytack period ignores the time valve of money, and this concerns bive Mamster's cFo. He has bow asked you to compute sipma) discounted paytack period, assuming the company has a 9% cost of capital, Complete the following table and perform amy neceisary calculationa. the entire table. (Note: If your answer is negative, be sure to use a minus sign in pour answee) Which vension of a project's papack peried should the cro use when evaluating froject sigma, given its thecrebcal superiaricy? The discounked parbeck perios Now berond the poice in tirie equal to the parback period. ingivese 1+4+4+4

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