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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 don't know the project's inltial cost, but you do know the project's regulac, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 9%, the oroject's Niv (rounded to the nearest dollar) is: $329,483$346,824$277,459$381,506 Which of the following statements indicate a fisdvantage of using the regular poybsck period (not the discounted payhack perios) for capita! budgeting dechions? Check all that apply The paynacc period does not take the project's entire le into account. The perbeck period is calculated uxing net income instead of cash fioms. The payback period does not take tie time value of moner into account

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