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Cold Goose Metal Works Inc. is a small firm, and several of its managers are worried obout how soon the firm will be able to

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Cold Goose Metal Works Inc. is a small firm, and several of its managers are worried obout how soon the firm will be able to recover its Initial investment from Project Beta'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. Compiete the following table and compute the project's comventional paybock period, For full credic, complete the entire table. (Note: Round the conventional payback peried to the nearest two decimal piaces. If your answer is negative use a minus sign.) The conventional payback period ignores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Beta's discounted payback period, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback periad to the nearest two decimal places. For full credit, complete the entire table. (Note: If your answer is negative use a minus signi.) Which version of a project's payback period should the Cro use when evaluating Project Beto, 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 method-is that they fall to consider the value of the cash flows beyond the point in time equal to the payback period. How much valye does the discounted payback period method fail to recognize due to this theoretical deficiency? $2,916,95351,250,296$1,696,274$4,529,607

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