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 imvestment from Project Delta's expected future cash flows. To answer this question, Cold Goose'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 follawing table and compute the praject's canventional paybock period. Far full credit, complete the entire table. (Note: Round the comventional payback period to two decimal places. If your answer is negative, be sure to use a minus sign in your answer.) The coriventional payback period ignores the time value of money, and this concerns Cold Goose's CFO. He has now asked you to compute Delta's discounted payback period, assuming the company has a 7 s cost of capital. Complete the following table and pertorm any necessary calculations. Round the discounted cash flaw values to the nearest whole dollar, and the discounted payback period to two decimal places. Far 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 peried should the cFo use when evaluating Project Delta, given its theoretical superiority? The d scounted payback period The regular payback period One theoretical disadvantage of both payback methods-compared to the net present walue method-is that they fail 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 payback pericd method fail to recognize due to this theoretical deficiency? $2,411,355$1,714,226$6,168,764$3,957,217