h 11. Assignment - The Basics of Capital Budgeting Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm wil be able to recover its initial investment from Project Sigma's expected future cash flows. To answer this question, Cute Camer's Cronos 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 Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer) Year o Year 1 52,000,000 Your $4,250,000 Year 3 $1,750,000 -$5,000,000 Expected cash flow Cumulative cash flow Conventional payback period: years The conventional payback period ignores the time value of monwy, and this concerns Cute Camer's CFO, He has now asked you to compute Sigma's discounted payback period, assuming the company has a 9% cost of capital. Complete the following table and perform any necessary calculation Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer) Year o Year 3 Year 1 $2,000,000 Year 2 $4,250,000 Cash flow -$5,000,000 $1,750,000 Discounted cash flow Cumulative discounted cash flow 3 Discounted payback period: Yoan Which version of a project's payback period should the Cro use when evaluating Project Sigma, given its theoretical superiority . The discounted payback period The regular payback period One theoretical disadvantage of both payback methode-compared to the net procent value methods that they fail to consider the value of the con Pows beyond the point in time equal to the Dayback period How much value in this example does the discounted payback period method fail to recognise due to this theoretical deficiency 33.186.183 54.921.461 51,763,333