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Fuzzy Button Clothing Company 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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Fuzzy Button Clothing Company 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 Beta's expected future cash flows. To answer this question, Fuzzy Button's CFO has asked that you compute the project's payback period using the following expected nat cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback period. Round the payback penod to the nearest towo decimal places. Bh sure to complete the entire table-even if the values exceed the point at which the cost of the project is recovered. The conventional payback period ignores the time value of money, and this concems Fuzzy Button's CFO. He has now asked you to compute Beta's discounted payback period, assuming the company has a 10% 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 penod to the nearest two decomal places. Again, be sure to complete the entire table - even if the values exceed the point at which the cost of the project is recovered Which version of a project's payback penod should the CFO use when evaluating Project Beca, given its theoretical superionity? The discounted parback period The regular payback period

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