The payback method helps firms establish and identify a maximum acceptable payback perlod that helos in their capital budgeting decislons. Comsider the case of fuzzy Button Clothing Company: Fuzzy Button Clothing Company is a small firm, and several of its managers are worried about how soon the frrm will be able to recover Its initial Irvestment from Project Alpha's expected future cash flews. To answer this question, Fuzzy Butten's CFO has asked that you compute the project's payback period uting 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 projects conventional payback peried, For full credit, complete the entire table. Note Round the corventional payback period to two decimal places. If vour answer is negative use a minus sign. The conventional payback period ignoces the time value of meney, and this concerns Furry Button's cro. He has now asked you to cemoute Apha's discounted paybock penod, assuming the compary has a 10% cost of captal. Cemplete the fosowing table and perform any necessary caiculations. For full credit, complete the entire table. Note: If your answer is negative use a minus sign. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. Which version of a project's payback period should the CFO use when evaluating Project Alpho, given its theoretical superiority? The regutar 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 does the discounted payback period method fail to recognize due to this theoretical deficiency? $4,827,198 $3,132,993 $1,314,801 $1,645,380