12. The NPV and payback period Suppose you are evaluating a project with the cash inflows 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 is 2.50 years. The project's annual cash rows are: Year Year 1 Year 2 Cash Flow $325,000 500,000 400,000 300,000 Year 3 Year 4 of the project's desired rate of return is 10,00%, the project'u NP-rounded to the nearest wholu dollar- Which of the following statements indicates a disadvantage of using the regular, or conventional, payback pa $151,286 al budgeting decisions? Check all that apply. $160,742 The payback period does not take into account the time value of money effects of a project's cash $170,197 The payback period does not take into account the cash flows produced over a project's entire tire: $189,108 The payback period is calculated using net income instead of cash flows