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Cold Goose Metal Works Inc. is a smal firm, and several of its managers are wonked about how seen the firm wit bo abte to

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Cold Goose Metal Works Inc. is a smal firm, and several of its managers are wonked about how seen the firm wit bo abte to recover is initial investment from Project Beta's expected future cash Flaws. To answer this question, Cold Goose's CFo has asknt that var compole the project's paryback period using the following expected net cash flows and assuming that the cash flows are recerwed evenly elreughout each year. Complete the following table and compute the project's conventional paytiock peniod, For full credic, complete the entie talle, (Nete: Ruind ine conventional payback period to the nearest two decimal plsces. If your answer is negative use a ininus sion.) The conventional payback penod ignores the time value of money, and this concems Cold Goose's Cro, He has now asked you ta compute Beta's discounted payback period, assuming the company has a 8% cost of capital, Complete the folowing table and peiform any necessary calculatias- Roued the discounted cash flow values to the nearest whole dolas, and the discounted payback period to the nearest two decimat places. For fit ciedit, complete the entire table. (Note: If your answer is negative use a minus sign.) Which version of a project's poryback period should the CrO use when evalasting Project Bents, oven iks thepecel superinity The discounted payback period The reosiar payback period One theoretical disadvantage of both paybock metheds-compared to the eet present value method-is that they thit to coenter the valin it the caik flows beyond the point in tine equat to the payback peniod. How much value does the discounted payback period methed fal to tecognive due to this theoreticil defoercy? $4,529,607 51,250,246 52,916,953 $1,606,274

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