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The blanks and the multiple choice pls Year o Year 1 Year 2 Year 3 Expected cash flow $3,400,000 $1,400,000 -$4,000,000 -$4,000,000 $1,600,000 -$2,400,000 Cumulative
The blanks and the multiple choice pls
Year o Year 1 Year 2 Year 3 Expected cash flow $3,400,000 $1,400,000 -$4,000,000 -$4,000,000 $1,600,000 -$2,400,000 Cumulative cash flow $1,000,000 $2,400,000 Conventional payback period: 1.71 years The conventional payback period ignores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Beta's discounted payback period, assuming the company has a 9% 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 period to the nearest two decimal places. Again, be sure to complete the entire table-even if the values exceed the poin at which the cost of the project is recovered. Year 0 Year 1 Year 2 Year 3 Cash flow $1,600,000 $3,400,000 $1,400,000 Discounted cash flow - $4,000,000 -$4,000,000 -$4,000,000 $ $ $ Cumulative discounted cash flow $ $ $ Discounted payback period: years Which version of a project's payback period should the CFO use when evaluating Project Beta, given its theoretical superiority? O The discounted payback period O The regular payback periodStep by Step Solution
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