7. The payback period Aa The paybadk methad hslps firms blish and identify a maximum acceptable payback periad that halps in ther capital budgeting desirs Conaider the case of Cod Gzose Metal Words It: Old Goose Metal works rc. ? small finn, and several of ts managers are morried about how son the finn nll b able to reanver is inta imestment from Prujsct Omega's expected futurecash flows. To arswer this question, Cld Goose's CFD has asked that yaucompute the prujects payback psriad using the ollowing expected net cash faows and axsuming that the cash flows ae realvd evenly throughout each year Complete the fallowing tabe andcompute the pujsct's conventional paybsck periad. Far ful crsdi, complete the entiretabe Expetted cash flow Oumulative cash flow 4,500,0001,300003,325,000 $1,575,000 Canventianal paybadk priad: The covendonal paybad periad igrores the time valueof money,and this conces Cd Goose's CFD. He has now xked you to compute Omega's discounted payback Pariad,assuming the company has 9% tnst of capital. Complete the following tabe and paform ay nesnessary caculatians. Round the decounted cash flow values to the nearest wheledollar, and the discounted payback periad to the nearest twD decimal placs. Far ful credit,complete the entiretabe. cash flow Dsgunted cash low Cumulative discounted cash flow 4,500,00O 3,C003325,C00 $1,575COD Discounted paybadk periad which versian of ? pr ject's pay back parad should the FO usenhsnevduating Prij uperarity? Omega, given ts theorical O The reguar paybadk pariad O The dacounted payback periad One theoretical dssdvantage of bath payback methads-compared to the net present value methad-is that they fa to corsiderthe value of the cash flows beyond the polnt in time squal to the paybadk pesriad Haw much value does the discounted payback periad methad fal to rengnzr due to this theoretical deficieny? O $2,367,565 ?$1,216,189 O $4,435,615 O $1,586,901