The payback method helps firms establish and identify a maximum acceptable payback period that helps in their capital budgeting decisions. Consider the case of Blue Hamster Manufacturing inc:: Blue Hamster Manufacturing Inc. is a small firm, and several of its managers are worried about how soon the fimm will be able to recover Its initial investment from Project Delta's expected future cash flows. To answer this question, Blue 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 received evenly throughout each year. Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table, (Note: Round the conventionsl payback period to two decimal places. If your answer is negative, be sure to vse a minus sign in your answer.) The conventionai perback period ignores the tane value of money, and this concers Biue Hamstery cro He has now aiked you to compute Delfal dicounke sayback period, assumirp the company has a 10% cost of capital, Complete the folowing table and perform any nececiary calaulatians Fround the discounted cash flow values to the nearest whole dollac, and the discounted payback period to tmo decmal olacos. Far full credit, camplefe the entire table. (Note: if your answer is nogative, be sure to use a minus sgn in your antwec) The conventional payback 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 calculations. Round the discounted cash flow values to the nearest whole doliar, 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 answer.) Which version of a projeats payback period should the CFO use when evaluating Project Delta, given its theoretical superionty? The discounted payback period The requiar payback period One theoretical disadvantage of both paybock methoos-comparsd to the net present value method is that they fai to consider the vaiue of the cash flows beyond the point in tme equal to the payback period. How much value in this example does the diecounted paybock period method fail to recognite due to this thearebical deflienep? 15,702,63 H.,577,761 19.759,579 31.574,453