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7. The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows

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7. The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inflows shown in the following table. Your boss has asked you to calculate the project's net present value (NPV). You dont know the project's initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. It the project's weighted average cost of capital (WACC) is 8%, the project's NPV (rounded to the nearest dollar) is: $383,701 $422,071 $326,146 5402,886 If the project's weighted overage cost of capital (WACC) is 8%, the project's NPN (rounded to the nearest dollar) is: $383,701 $422,071 $326,146 $402,886 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that opply. The payback period does not take the time value of money into account. The payback period does not take the project's entire Ife into account. The payback period is calculated using net income instead of coch flow

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