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The payback method helps fims establish and identify a maximum acceptable payback period that helps in their eapital budgeting decisions. Consider the case of Blue

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The payback method helps fims establish and identify a maximum acceptable payback period that helps in their eapital budgeting decisions. Consider the case of Blue Hamster Manufacturing Incit Blue Hamster Manufocturing inc. is a small firm, and several of its manapers are worried about how soon the fim will be able to recoyer its initial investment from Project Delta's expected future cash flows. To answer this question, Blue Hamster'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 throughouk each year: Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) The conventional payback period ignores the time value of money, and this concerns Blue Hamster'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 caiculations. 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 conventional payback period ignores the time value of money, and this concerns Bfue Hamster's cro. He has now asked you to compute Deita's discounted payback period, assuming the company has a 10 cost of capital complete the following table and perform any necessary caiculotions. Round the discounted cash fow values to the nearest whole dollar, and the discounted payback, period to two decimat ploces, For full credit, complnte the entire table. (Note: If your answer is negative, be sure to ute a minus signi in your answer.) Which version of a project's payback period should the Cro use when evaluating Project Deita, 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 flows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? $1,974,455 One theoretical disadvantage of both paybsck methods -compared to the net prosent value method-is that they fail te consider the value of the flows beyond the point in time equal to the naybsck period. How much value in this example doen the discounted payback period method fall to recognize due to this theoretical deficiency? $1,974,455$5,792,637$3,759,57951,577,761

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