13. The NPV and payback period What information does the payback period provide? Suppose Praxis Corporation's CFO is evaluating a project with the following cash inflows. She does not know the project's initial cost, however, she does know that the project's regular payback period is 2.5 years. Year Year 1 Cash Flow (Dollars) $325,000 450,000 Year 2 Year 3 475,000 Year 4 425,000 If the project's weighted average cost of capital (WACC) is 8%, what is its NPV? O $381,870 O $327,317 O $363,686 O $118,239 that apply Which of the following statements indicate a disadvantage of using the discount payback period for capital budgeting decisions? The discounted payback period does not take the time value of money into account, The discounted payback period is calculated using net income instead of cash flows The discounted payback period does not take the project's entire life into account