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The payback method helps firms establish and identify a maximum acceptable wyback period that helps in their capital budgeting decisions. Cute Camel Woodcraft Company is

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The payback method helps firms establish and identify a maximum acceptable wyback period that helps in their capital budgeting decisions. Cute Camel Woodcraft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its initiativestment from Project Omega's expected future cash flows. To answer the question, Cute Camel's CFO has asked that you compute the project's payback period ung the following expected net cash flows and assuming that the cash flows are received evenly throughout each year Complete the following table by computing the project's cominal payback period. (Hint: For full credit, complete the entire table. Round the convenal payback period to the nearest two decal places. If your answer as negative use a minusson Year o - $6,000,000 Year 1 $2,000,000 Year 2 $5,100,000 Year $2,100,000 Expected cash flow Cumulative cash flow Conventional payback pered: $ voor The conventional payback period agrores the time value of money, and the concerna Cute Camel's cro. He has now asked you to compute Omega's discounted payback period, assuming the company has a cost of capital Complete the following table and perform any necessary calculation. (Hint: Round the discounted cash flow values to the nearest whole doit, me the discounted payback period to the nearest two decimal places. For full credit complete the entire table. If your answer a negative use a was on) Year -$6,000,000 Year 1 $2,400,000 Year 2 $5,100,000 Year 12,100,000 Cantikom 5 Curative discounted cash flow De pack period year Wich won of project's payback period should the Crows when evaluating Project Only, give is theoretical superiority? The daunted paytuck bered Dethlevantage of both eyback methodo compared to the net present value method is that they tolto consider the value of the cash flows beyond the portion to the pack period How much valor does the discounted pwynck period methods to recogidor to the reader? 51.667.2016 1,899,270 14.019 420

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