6. The payback period The payback method helps firms 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 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 Delta'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 cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the poet's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If viur answer is negative, be sure to use a minus sign in your answer) Expected cash flow Year -$5,000,000 Year 1 $2,400,000 Year 2 $5,100,000 Year 3 $2,100,000 Cumulative cash flow 5 Conventional payback penod years The conventional sayback period ignores the time value of inones and this conceme Cold Good's CFO, He has now aed you to compus Deta's discounted payback period, assuming the company has a 7 cost of capital. Cumpets the flowing table and pedo Round the discounted cash flow values to the nearest whole dollar, and the daunted payback penod to two decimal places, Put credit, ots