The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc:: Cold Goose Metal Works Inc. Is a small firm, and several of its managers are worricd about how soon the firm will be able to recover its initial investinent from Project Delta's expected future cash flows. To answer this question, Cold Goose's CFO has asked that you compute the project's paybeck period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire tabie. (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 Cold Goose's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 7% cost of capital. Complete the following table and perform any becessary 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.) The comventional payback period lqnores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 7% cost of capltal. Complete the following table and perform any necessary calculations. Round the dischunted cash flow values to the nearest whole doliar, and the discounted payback period to two decimal places, For full cred t, complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer.) Which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period The discounted payback period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fail to consider the valie of the cash fows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period nothod fall to recognire due to this theoretical deficiency? $6,168,764 Which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superionity? The regular payback period The discounted 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 fall to recognize due to this theoretical deficiency? $6,168,764$3,957,217$1,714,226$2,411,755