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Year 0 Year 1 Year 2 Year 3 Expected cash flow $5,100,000 $2,100,000 -$6,000,000 -$6,000,000 $2,400,000 -$3,600,000 Cumulative cash flow $1,500,000 $3,600,000 Conventional payback period:

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Year 0 Year 1 Year 2 Year 3 Expected cash flow $5,100,000 $2,100,000 -$6,000,000 -$6,000,000 $2,400,000 -$3,600,000 Cumulative cash flow $1,500,000 $3,600,000 Conventional payback period: 1.71 years The conventional payback period ignores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 7% 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.) Year o Year 1 Year 2 Year 3 Cash flow -$6,000,000 $5,100,000 $2,400,000 $2,242,991 $2,100,000 $1,714,226 Discounted cash flow $4,454,538 -$6,000,000 -$6,000,000 Cumulative discounted cash flow Discounted payback period: years

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