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The payback method helps firms establish and identity a maximum aceptable puytrack period that helps in their pets bandeine Geddes. Consider the case of Green

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The payback method helps firms establish and identity a maximum aceptable puytrack period that helps in their pets bandeine Geddes. Consider the case of Green Caterpillar Garden Supplies Inc. Green Caterpillar Garden Supplies Inc. is a small firm, and several of its managers are worried about how on the im will be to recover its initial investment from Project Alpha's expected future cash flows to answer this question, Green Caterpilla's cold that you compute the project payback period using the following expected net cash flows and wing that the cash flows we 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: Hound the conventional payback period to two decimal places. If your answer is negative, be sure to use a minus on in your wer) Year 2 Year 3 $1.575,000 Year $4,500,000 $ Year 1 $1,800,000 s $3,625,000 $ $ Expected cash flow Cumulative cash flow Conventional payback period: years as the time value of money, and this concerns Green Caterpillar's CFO: He has now asked you to compute antal Complete the following table and perform any necessary The conventional payback period fonores the time value of money, and this concerns Creen Caterpillar CFO.Hinhan now use you to compute Alpha's discounted payback period, assuming the company has a 9% cost of capital. Complete the following table and performance calculations. Round the discounted cash flow values to the nearest whole dollar and the discounted payback period to two decimal place forum credit, complete the entire table. (Note: If your answer is negative, be sure to use a mission in your wer) Year o Year 1 $1,800,000 Year $1,575,000 Cash flow Discounted cash flow Cumulative discounted cash flow Discounted payback period: - $4,500,000 5 S Year 2 $3,825,000 5 5 S years Which version of a project's payback period should the CFO use when evaluating Project Alpha, given its thuoretical 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 perod. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? 5 45F A GA00 Which version of a project's payback period should the CFO use when evaluating Project Alpha, given its theretical pentity 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 in this example does the discounted payback period method fail to recognize due to this theoretical deficiency O $1,586,991 O $2,867,565 O $1,216,189 O 34,435,615 Save & Continue die Now

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