Question: Complete the following table by computing the project's conventional payback period. (Hint: For full credit, complete the entire table. Round the conventional payback penod to

Complete the following table by computing the project's conventional payback period. (Hint: For full credit, complete the entire table. Round the conventional payback penod to the nearest two decimal places. If your answer is negative use a minus sign) Year o Year 1 Year 2 Year 3 -$5,000,000 $2,000,000 $4,250.000 $1,750,000 Expected cash flow Cumulative cash flow Conventional payback period: $ s years The conventional payback period ignores the time value of money, and this concerns Fuzzy Buttons CFO. He has now asked you to compute Omega's discounted puyback period, assuming the company has a 10% cost of capital complete the following table and perform any necessary calculations. (Hint: Round the discounted cash flow values to the nearest whole dollar and the discounted paytuck period to the nearest two decimal places. For full credit, complete the entire table. If your answer is negative use a minus sign Year o Year 2 Year 3 Castillow Year 1 $2,000,000 $5,000,000 $4,250,000 $1,750,000 Discounted cash flow S s $ S 3 Gimulative discounted cash flow Discounted playback period S years Which version of a project's payback period should the CFO use when evaluating Project Omega, given its theoretical superiority? The regular payback period The discounted wyback period One theoretical disadvantage of both payback methods-compared to the net present value methods that they fail to consider the value of the cash flows beyond the point in time equal to the payback period. How much value does the discounted payback period method fail to recognize due to this theoretical deficiency? O $3,132.983 O $1,645,380 O $4,827,198 $1,314,801
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