1o. The payback period Aa Aa The payback method hel capital budgeting decisions. ps firms establish and identify a maximum acceptable payback period that helps in their 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 soon the firm will be able to recover its initial investment from Project Alpha's expected future cash flows. To answer this question, Green Caterpillar's CFO has asked that you compute the project's payback period using the following expected net cash flows and assuming that the cash flows are received evenly throughout each year. Complete the folowing table and compute the project's conventional payback period. For full credit, complete the entire table. Year O Year 1 $1,600,000 Year 2 $3,400,000 Year 3 Expected cash flow Cumulative cash flow -4,000,000 $1,400,000 Conventional payback period: The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's CFO. He has now asked you to compute Alpha's discounted payback period, assuming the company has a 10% cost of Complete the fallowing ta ble 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. capital