The payback method helps firms establish and identify a maximum acceptabie payback period that helps in their capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company; Cute Camel Woodcraft Company is a small firm, and saveral of its managers ara worried about how socn the firm will be able to recover Its initial investment from Project Sigma's expected future cash flowe. To anawer this question, Cute Camela cro has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash fiows are received eveniy. throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, compiete the tatire tabie: (Note: Round the conventional payback, period to two decimal places. If your answer is negative, be sure to une a minus ign in your answer.) Ch 11- Assignment - The Basics of Capital Budgeting The conventional payback period ignores the time value of money, and this concerns Cute Camel's Cro, He has Baw askad you to campute sigmas discounted payback period, assuming the company has a 9%6 cost of capital, Complete the fotlowing tabie and perform any nacessary calculabions, Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places, for full credit, comple the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answee.) Which version of a project's payback period should the CFO use when evoluating Project Stgma, given its thecretical superiocity? 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 One theoretical disadvantage of both payback methods -compared to the net present value method-is that they fail to consider the value of the nows 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 theorobical deficiency? $1,76h323$3,186,163$4,928,461$1,351,321