The payback method helps firms establish and identify a maximum acceptable payback period that heips in their capital budgeting decisions. Consider the case of Cute Camel Woodcraft Company: Cute Camel Wooderaft Company is a small firm, and several of its managers are worried about how soon the firm will be able to recover its invial investment from Project Alpha's expected future cash flows. To answer this question, Cute Camel's CFO has asked that you compute the project's poyback period using the following expected net cash flows and assuming that the cash flows are recelved evenly trroughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventianal payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) 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 paybrck period lignores the time value of money, and this concerns Cute Camel's CFO. He has now asked you to compute Alpha's discounted paybeck period, assuming the company has a8% 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, complete the entire table. (Note: If your answer is negative, be sure to use a minus sign in your answer) Which version of a project's payback period should the CFO use when evaluating Project Alpha, given its theoretical superiority? The regular payback period The discounted payback period One theoretical disadvantage of both payback methods -compared to the net prosent value method-is that they fall to consider the value of the cash flows beyond the point in time equal to the paybsck period. How. much volue in this example does the discounted payback period method fall to recognize due to this theoretical deficiency? $4,529,60751,696,274$2,916,95351,250,286 th the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was not equal, The amount split up in your portfolio 5 shown below: Calculate the weight of each stock in the portfolio (the percentage invested in each stock). Weight of Stock A = Weight of Stock B - Weight of stock C = Weight of stock c Now at the end of the year the stocks have produced the following stock returns: Now at the end of the year the stocks have produced the following stock returns! The return. on this thock portfolio is the weighted average of each of the component stocks" returns. Use the weights calculated above to determine the stock nortolios return over the past year. 11.250 4.13754 18.375% 10.50% 21.375%