Th 10: Assignment - The Basics of Capital Budgeting. Evaluating Cash flows 10. The payback period The payhack method helps firms estabs=h and identify a maximum acceptathe payback period that helps in their copital budgeting decisians, Consider the case of Elve Hamster Manufacturing Ine: Bloe Harsater Manufacturing Inc is a simal fim. and seweral of ta manacers are noeried about hon suon the firm will be able to recever ats initial investment from Project Sigmas expected future cash flows. To answer this question, flue Hamber's cFo has atked that youl compute the projectit sayback period using the following expected net cast flows and aswming that the cash flows are recelved evenily throughost exch rean Complete the following tatie and combute the projects corventional obrtack ceriod. for full crest, comblete the entire table. (Note: found the comentional bavback beriod to the nearett twa deomal phacet. If your anyeer is negative use a minus sign.) Which version of a project's payback period should the GFO use when evaluating Project 5 igma, Given its theoretical superiority? The redular payback peridd The ditcounted payback pericd One theoredical disadvantage et beth payback methods-compared to the net present value methed-is that they fall to censider the yalue of the cash Flows beyond the port in tinhe +qual to the payback period. How much walue doec the discounted payback period method fall to recogrize ifut to this theoretical deficiency? ,1112:509 17.6.19, 144 51.007,075 B1,ta? 17