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 worried about how soon the firm will be able to recover its initial investment from Project Delta's expected future cash flows. To answer this question, Cold Goose'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 and compute the project's conventional payback period. For full credit, complete the entire table. (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 concems Cold Goose's CFO. He has now asked you to compute Delta's discounted paybock period, assuming the company has a 75 cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback period to two decimal places. For full credit, complefe the entire table. (Note: If your answer is negative, be sure to use a minus sign in your ariswer). Which version of a project's paybsck period should the cro use when evaluating Project Delta, olven its theoretical superiority? The discounted payback period The regular payback period floms beyond the point in time equal to the nayback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? $2,411,755$3,957,217$6,168,764$1,714,226