Question: please help me 6. The payback period The abyback method heips firms establish and ldentify a maximum acceptable payback period that helps in their capital

please help me
please help me 6. The payback period The abyback method heips firms
establish and ldentify a maximum acceptable payback period that helps in their

6. The payback period The abyback method heips firms establish and ldentify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Cute Camel Woodcrat Company: Cute Camel Wocderaft Company is a small firm, and several of its managers are womied about how soon the firm will be able to recover its Initial investment from Project Delta's expected future cash fows. To answer this question, Cute Camer's cFo has asked that you compute the project's payback period using the following expected net cash fows and assuming that the cash fows are recelved evenly throughout each year. Complete the following table and compote the project's conventional paybsck period. For fall credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to wse a minus sign in your answec) The conventional payback period ignores the time value of moneyi and thas concerns Cute Camel' CrO. He has now asked you to campute Deita's discounted parback period, assuming the company has a 7% cost of copital, Complete the following table and perform any necessary calculations. Round the discounted cash fow values to the nearest whole doliac, and the discounted payback period to two decimal placel. For full credit, complete the entire table. (Note: if your answer is negative, be sure to use a minus sign in your answer.) Which version of a project's payback period should the CFO use when evaluating Project Deita, given its theoretical superiority? The discounted payback period The regular payback period One theoretical disadvantage of both payback methods-compared to the net present value method-is that they fall to consider the value of the cash fows beyond the point in time equal to the payback period. How much value in this example does the discounted poyback period method fall to recognize due to this theorebical defidency? 42,609,795$3,297,680$5,140,636$1,426,521

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