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The conventional payback period ignores the time value of money, and this concerns Fuzzy Button's CFO. He has now asked you to compute Sigma's discounted
The conventional payback period ignores the time value of money, and this concerns Fuzzy Button's CFO. He has now asked you to compute Sigma'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 period to the nearest two decimal places. For full credit, complete the entire table. Which version of a project's payback period should the CFO use when evaluating Project Sigma, given its theoretical superiority
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