The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's CFO. He has now asked you to compute

Sigma's discounted payback period, assuming the company has a $8\%$ 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 point

at which the cost of the project is recovered.

Which version of a project's payback period should the CFO use when evaluating Project Sigma, given its theoretical superiority?

The regular payback period

The discounted payback period