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The conventional payback period ignores the time value of money, and this concerns Blue Hamsters CFO. He has now asked you to compute Sigmas discounted

The conventional payback period ignores the time value of money, and this concerns Blue Hamsters CFO. He has now asked you to compute Sigmas 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 two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer.)

Year 0

Year 1

Year 2

Year 3

Cash flow -$6,000,000 $2,400,000 $5,100,000 $2,100,000
Discounted cash flow

Cumulative discounted cash flow

Discounted payback period:

years

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