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Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be able to recover

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Blue Hamster Manufacturing 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, Blue Hamster's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flow are received evenly throughout each year Complete the following table and compute the project's conventional Dayback period for full credit, complete the entire table. (Note: Round the conventional avtack period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) Year -$6,000,000 Year 1 $2.400,000 Year 2 $5,100,000 Year 52.100,000 Expected cash flow Cumulative cash Now Conventional payback period: Year The conventional payback period ignores the time value of money, and this concerns Be Hamster's CFO. He has now asked you to computer discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary actions. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places for credit, complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer.) Year o -56,000,000 Year 1 $2.400,000 Year 2 55,100,000 Year $2,100,000 Cash flow Discounted cash on Curative discounted cash flow Discounted payback period: . years 16,000,000 $2,400,000 55,100,000 $7.100,000 Cash now Discounted cash flow Cumulative discounted cash flow Discounted payback period years which version of a project payback period should the Crouse when evaluating Project Delta, given its theoretical superiority? The discounted payback period The regular payback period One theoretical disadvantage of both payback methods-compared to the net present value methods that they fail to consider the value of the cash flows beyond the point in time equal to the payback period How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? $1,974,455 $3,759,579 $5,792,637 $1,577,761

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