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 flows are: Year Year 1 Year 2 Year 3 Cash Flow $325,000 400,000 300,000 300,000 Year 4 If the project's desired rate of retum is 7.00%, the project's NPV-rounded to the nearest whole dollaris Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply. The payback period does not take into account the cash flows produced over a project's entire life. The discounted payback period is calculated using net income instead of cash flows. The discounted payback period does not take into effect the time value of money effects of a project's cash flows. DUSS has asked you to calculate the projects ne 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 flows are: Year Cash Flow Year 1 Year 2 $325,000 400,000 300,000 Year 3 Year 4 300,000 If the project's desired rate of return is 7.00%, the project's NPV-rounded to the nearest whole dollar-is Which of the following statements indicate a disadvantage of using the discounted payback period for capita $201,497 ecisions? Check all that $214,090 The payback period does not take into account the cash flows produced over a Intire life. $226,684 The discounted payback period is calculated using net income instead of cash $251,871 The discounted payback period does not take into effect the time value of mond If a project's cash f