Complete the following table and compute the project's conventional payback period. For full credit, complete...

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Complete the following table and compute the project's conventional payback period. For full credit, complete the entire table. Note: Round the conventional payback period to two decimal places Year Year 1 Year 2 Year 3 Expected cash flow -6,000,000 $2,400,000 $5,100,000 $2,100,000 Cumulative cash flow Conventional payback period: The conventioanal paybeck period ignores the time value of money, and this concerms Green Caterpillar's CFO. He has now asked you to compute Omega's discounted payback periad, assuming the company has a 8% cost of capital. Complete the following table and perform any necessary calculations. Round the discounted cash flow values to the nearest whole dellar, end the discounted payback period to the nearest two decimal places. For full credit, complete the entire table Year 0 Year 1 Year 2 Year 3 Cash flow -6,000,000 $2,400,000 $5,100,000 $2,100,000 Discounted cash flow Cumulative discounted cash flow Discounted payback period: Which version of a project's payback period should the CFO use when evaluating Project Omega, given theoretical superiority? O The regular payback period OThe discounted payback period One theoretical disadvantage of both payback methods-compared to the consider the value of the cash flows beyond the point in time equal to the payback period. t present value methad-is that they fail How much value does the discounted payback period method fail to recognize due to this theoretical deficiency? O $1,667,048 $6,039,476 O $3,889,270 All nhs resaved sted A ngts Grade Now Save & Coninun e 203 Ogaan Leamia ept IMG 1287.jpg IMG 1290.jpg

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