The paybsck method heips firms estabish and identify a maxinnum acceptable payback period that heips in their capital budgeting cecisions. Consider the cose of Cude Cemel Woodcraft Compury: Cute Camei Wooderaf Company is a small firm, and several of its manbsers are worried about how soon the firm will be able to recover As initiel investment from Praject Sigma's expected future cish flows. To aftwer this quettion, Cute Camel's cro has alked that you compute the project s payback period using the following expected net cash fows and assuming that the cash fiows are rectived evenly theoughour each year? Complete the following table and compute the project's conventional parbock period. For fuil credit, complete the entire table. (Note: Round the conventional pwoaci. period to two decimel places. If vour answer it negative, be sure to use a minus signt in your answer.) The coeventienal payback period ignores the time value of maney, and this cancerns Cute Cameis cro. the has now asked you to compute stigma's discourted paytack period, assuming the company has a 9 ts cost of capital. Compiete the following table and pertorm ary necesasary calculations: Phond the discounted cash fiow values to the featest phole dollac, and the discounted payback period to two decimal places, For full credit, complete the entire table, (Note: If your answer is negotive; be sure to use a minus sign in your answer.) Which version of a projectiv payback period should the Cro use when evaluating Project Sigma, glven its theoretical superiseity? The discounted Dayback period The regular payback period One theorebical disadvantage of both payback methods-compared to the net present value methed-is that they fall 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 mathod fail to recognize due to this theoretical deficiency? $3,186,183$1,763,323$1,351,321$4,928,461