The payback method helps ms establish and identify a maximum acceptable payback period that helps in capital budgeting decisions. There are two versions of the payback method the convention payback method and the discounted payback method Consider the following case Green Caterpillar Garden Supplies Inc. is a small tim, and several of its managers are worried about how soon the firm will be able to recover its initial investment from Project Omega's perted future cash flows. To answer this question Green Cater '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 and compute the pro c encia tur ed Round the payback period to the neareste decimal places. Be sure to complete the entire table even if the values exceed the point at which the cost of the project is recovered Year 2 Year 3 Year $-4.500.000 Year 1 $1,800,000 Expected cash flow Cumulative cash flow Conventional payback period: years The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's Co. He has now asked you to compute Oma's discounted payback period, assuming the company has cost of capital The conventional payback period ignores the time value of money, and this concerns Green Caterpillar's CFO. He has now asked you to compute Omega's discounted payback period, assuming the company has a % cost of capital Complete the following table and perform any necessary calculations. Round the discounted cash flow value to the nearest whole dollar, and the discounted payback period to the nearest two decimal places. Again, be sure to complete the entire table-even if the values exceed the point at which the rest of the project is recovered Year $4,500,000 Year 1 $1,800,000 Year 2 $3,825,000 Year 3 $1,575,000 Cash Flow Discounted cashow Cumulative discounted cash flow Discounted payback period: Which version of a project's payback period should the CFD use when evaluating Project Omega, given its theoretical superiority? The discounted payback period The regular payback period