istory Bookmarks Window Help Average: 116 Aa Aa 13. The payback period The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cold Goose Metal Works Inc. Cold Goose Metal works 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 Beta's expected future cash flows. To answer this question, Cold Goose's CRo 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 following table and compute the project's conventional payback period. For full credit, complete the Year o Year 1 Year 2 Year 3 Expected cash flow 5,500,000 $2,200,000 $4,675,000 $1,925,000 Cumulative cash flow Conventional payback period T The conventional pa period ignores the time value of money, and this concerns cold Goose's cFo. He has now the you to compute Beta's discounted payback assuming the company has a 7% cost of capital. Complete following table and perform any necessary calculations. Round the discounted cash f values to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. For full credit, complete the Year o Year 1 Year 2 Year 3 $2,200,000 $4,675,000 $1,925,000 cumulative discounted cash flow MacBook Pro