The payback method helps firms establish and identify a maximum acceptable payback period that helps in theit capital budgcting decisions, Consider the case of Blue Hamster Manufacturing Inci: Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the firm will be abie to recover its initial investrment from Project Delta's expected future cash flows. To answer this question, Blse Hamster'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 recelved evenly throughout each year. Complete the following table and compute the project's conventional paybacle period. For full credit, complete the entire table. (Note: Round the conventional payback period to two decimal places. If your answer is negative, be sure to use a minds sign in your answer.) The conventional paybeck period ignores the time value of money, and this concerns Blue Hamster's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 10% cost of capital. Complete the following table and perform any necessary calculatons. Round the discounted cash flow values to the nearest whole dollar, and the discounted payback pertod to two decimal places. For full credit, complete the entire table. (Note: If your answer is negative, be sure to wse a minus sign in your answer.) 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 theoretical disadvantage of both-payback methods-compared to the nek, present value method-is that they fall to consider the value of the cast fows beyond the point in time equal to the payback period: How riuch value in this example does the discounted payback period method fal to recognite due to this theoretical deficiency? $5,792,637$1,577,761$3,759,579$1,974,455