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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 Delta's discounted

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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 Delta'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. Again, be sure to complete the entire table-even if the values exceed the point at which the cost of the project is recovered. Year o Year 1 Year 2 Year 3 $-5,000,000 $2,000,000 $4,250,000 $1,750,000 Cash flow W Discounted cash flow Cumulative discounted cash flow Discounted payback periodo years

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