The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Furzy Button clothing company: Fuzzy Button clothing company is small firm, and several of its managers are worried about how soon the firm will be able to recover is initial investment from Project Delta's expected future cash flows. To answer this question, Fuzzy Button's CFD has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are resolved evenly throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. The conventional payback period ignores the time value of money, and this He has now Fury Button's asked you to compute Delta's discounted payback period assuming the company has a cost of capital. Complete whole dollar, and the discounted pay bad period to the nearest two decimal places. For full credit, complete the entire table. Which version of a project's payback period should the CFD use when evaluating project Delta, 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 cash flows beyond the point in time equal to the payback period. How much value does the discounted payback period method fall to recognize due to this theoretical deficiency? $, 577, 761 $5, 792, 637 $375, 579 $1974455