The payback method teps ms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions Consider the case of Bue Harnster Manufacturing Inc: Blue Harnster Manufacturing Inc is a small firm, and several of its managers are worried about how soon the from will be able to recover is initial investment from Projec Delta's expected future cash flows. To answer this question, Blue Hamster's Cro has asked that you compute the project's payback period using the folowing expected net cash flows and assuming that the cash fons are received evenly throughout each year. Corrplete the following table and compute the project's conventionat payback perlod. For all credit, complete the entire table Expected cash flow Cumulative cash flow Year o -4,000,000 Year 1 $1,600,000 Year 2 $3,400,000 Year a $1,400,000 Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Blue Hamster's CF. He has now asked you to compute Deita's discounted payback period, assuming the company has a 10% 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 the nearest two decimal places. For full credit, complete the entire table Year o -4,000,000 Year 1 $1,600,000 Year 2 $3,400,000 Year 3 $1,400,000 Cash flow Discounted cash flow Cumulative discounted cash flow Discounted payback period: MacBook DOO SO F3 886 F F5 # $ A % & Year 1 Year 3 Year o -4,000,000 Year 2 $3,400,000 $1,600,000 $1,400,000 Cash flow Discounted cash flow Cumulative discounted cash flow Discounted payback period: which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period The discounted 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 $1,316,303 $3,861,758 O $2,506,386 $1,051,841