he payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc.: Cold Goose Metal Works Inc. is a small fitm, and several of its managers are womed about how soon the firm will be able to recover its initial investment from Project Delta's expected future cash flows. To answer this question, Cold Goose's Cro has asked that you compute the project's payback penod using the following expected net cash flows and assuming that the cash flows are recerved 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 paybock penod to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) The comventional paytack period ignores the time value of money, and this concems Cold Goose's Cro. He has now asked you to compute Delta's discounted payback period, assuming the company has a 7\% cost of capital. Cocmplete 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 two decimal places. For full credit, complete the entike table. (Note: If your answer is neqative, be sure to use a minus sogn in your answer.) Which verston of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period The discounted payback period One theoretical disadvantage of both payback methods comparted 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 in this example does the discounted payback period method fail to recognize due to this theoretical defioency? $6,168,764$2,411,755$1,714,226$3,957,217