Question: Need help please! The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capitar buagecung oecusions. Consider the

Need help please!
Need help please! The payback method helps firms establish and identify a
maximum acceptable payback period that helps in their capitar buagecung oecusions. Consider

The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capitar buagecung oecusions. Consider the case of Cute Camel Woodcraft Company: Cute Camel Woodcraft Company 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 Delta's expected future cash flows. To answer this question, Cute Camel'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 following toble and compute the project's conventional payback period. For full credit, complete the entire table. (Note: Round the conventional payback penod to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) The conventional payback period ignores the time value of money, and this concems Cute Camel's Cro. He has now asked you to compute Delta's discounted paybock period, assuming the company has a 7% cout of capital. Complete the following table and perform any necessary caloulations. Round the discounted cash How values to the nearest whale dollot, 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 anwer.) Which version of a project's payback period should the CFO use when evaluating Project Delta, given its theoretical superiority? The regular payback period The discounted payback period One theoretacal disadvantage of both poyback methods-compared to the net present value method-is that they fail to consider the value of the cash flows beyond the point in time equal to the payback period. How much value in this example does the discounted payback period method fail to recognize due to this theoretical deficiency? 52,009,395 53,297,680 55,140,636 51,428,521

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