The payback method heips firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Fuzzy Button Clothing Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Alpha's expected future cash fows. To answer this question, Fuzry Button's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table by computing the project's conventional payback period. (Hint: For full credit, complete the entire table, Round the canventional payback perlod to the nearest two decimal places. If your answer is negative use a minus sign.) Which version of a project's payback period should the CFO use when evaluating Project Alpha, given its theoretical superiority? The discounted payback period The regular payback period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fail to consider the value of the cash lows beyond the point in time equal to the payback period. How much value does the discounted payback period method fail to recognize due to this theoretical deficiency? $6,039,476 $3,889,270 $1,667,048 $2,261,698 The corventional payback period igneres the time value of money, and this concerns Futzy Button's CFO, He has now asked you to compute Alpha's discounted payback period, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. (Wint: Round the discounted cash flow values to che nearest whole dollar, and the discounted payback period to the nearest fwo decimal places. For fulf credit, complete the entire table, If vour answer is negative use a minus sin ) Which version of a project's paryback period should the CFo use when evaluating Project Alpha, given its theoretical superionity? The discounted payback period The regular pastack period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fail to consider the value of the cash flows beyond the point in time equal to the payback period