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Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Year 0 Year 1 Year 2 Year

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Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Year 0 Year 1 Year 2 Year 3 Expected cash flow Cumulative cash flow -6,000,0DD $2,400,000 $5,100,000 $2,100,0DD Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Fuzzy Button's CFO. He has now asked you to oompute Alpha's discounted payback period, assuming the oompany has a 7% oost 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 period to the nearest two decimal places. For full credit, complete the entire table. Year 0 Year 1 Year 2 Year 3 Cash flow Discounted cash low Cumulative discounted cash low -6,00D, 0DD $2,400,000D $5,100,00D $2,100,000 Discounted payback period: which version of a project's payback period should the CFO use when evaluating Project Alpha, given its theoretical superiority? O The discounted payback period O The regular payback period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fail to consider the value of the cash flows beyond the point in time equal to the payback period. How much value does the discounted payback period method fail to recognize due to this theoretical deficiency? $6,168,764 O $3,957,217 O $2,411,755 $1,714,226

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