The payback method helps firms establish and identify a maximum acceptable payback period that helps in their caputal 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 worried about how soon the firm will be able to recaver its initial investment from Project Delta's expected future cash flows. To answer this question, Cold Goose's cro has asked that vou compute the proyect's payback period using the following expected net cash flows and assuming that the cash flows are received evenily throughout each vear. Complete the following table and compute the project's corvenbenal payback period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If rour answer is negative, be sure to use a minus siga in your answer.) The conventional payback penod ignores the time value of money, and this concerns Cold cioose's cro. He has now asked you to compute Delta's divcounted payback penod, assurning the company has a 7 th cost of capital, Complete the following table and perform any necessary calculations. Round the descounted cosh flow valies to the nearest whote doltar, and the discounted paybuck period to two decimal places. For full credic, complete the entire table, (Note: if your answer is negative, be sure to use a munus sign in your answer.) AOL Final Review Which version of a project's payback period should the CFo use when evaluating Project Delti, given its theoretical superiority? The discounted payback period The regular payback period One theoretical disadvantape 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? $6,168,764$3,957,21751,714,226$2,411,755