The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. initial investment from Project Sigma'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 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 conventional payback period to the nearest two decimal places. If your answer is negative use a minus sign.) The conventional payback period ignores the time value of money, and this concerns Blue Hamster'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. (Hint: Round the discounted cash flow values the the and the discounted payback period to the nearest two decimal places. For full credit, complete the entire table. If your answer is negative use a minus sign.) Which version of a project's payback period should the CFO use when evaluating Project Sigma, given its theoretical superiority? The discounted payback period The regular payback period flows beyond the point in time equal to the 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 flows 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? $1,696,274$4,529,607$2,916,953$1,250,286