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

Complete the following table by computing the projects conventional payback period. (Hint: For full credit, complete the entire table. Round the conventional payback period to the nearest two decimal places. If your answer is negative use a minus sign.)

Year 0

Year 1

Year 2

Year 3
Expected cash flow -$5,000,000 $2,000,000 $4,250,000 $1,750,000
Cumulative cash flow

Conventional payback period:

years

The conventional payback period ignores the time value of money, and this concerns Fuzzy Buttons CFO. He has now asked you to compute Alphas discounted payback period, assuming the company has a 10% cost of capital.

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