Section 2: Payback Period (12 points) The Managers need your help screening the potential store based on forecasted revenue they received from corporate. Their first concern is how quickly they can recover their initial investment As you know, the equipment and supplies cost $750,000. The forecasted revenues are $135,000 in year 1, $165,000 in year two, $195,000 in year three, $220,000 in year four, $250,000 in year five, and $285,000 in year six. Calculate and compare the Conventional and Discounted Payback Periods for this project. The Managers' cost of funds for this analysis is 6% compounded annually. Make a recommendation to the Managers whether to accept or reject the store idea based on the fact that they absolutely want the payback to be less than five years in order to proceed. a) Conventional Payback Period Calculations (6 points) (may not need all columns) Cash Flow Cumulative Cash Flow Payback period = Recommendation: b) Discounted Payback Period Calculations (6 points) (may not need all columns) in Cash Flow Cost of Funds Cumulative Cash Flow Payback period = Recommendation