12. The NPV and payback period Suppose you are evaluating a project with the cash flows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular or conventional, payback period $ 2.50 years, The project's annual cash flows are: Year Year 1 Year 2 Cash Flow $400,000 500,000 500,000 Year 3 Year 4 375,000 > if the project's desired rate of return is 10.00%, the project's NPV-rounded to the nearest whole dolaris Which of the following statements indicates a disadvantage of using the regular, or conventional, payback period for capital budgeting decisions? Check all that apply The payback period is calculated using net income instead of cash flows The payback period does not take into account the time value of money effects of a project's cash flows. The payback onog does not take into account the cash flows produced over a project's entire life