7. The NPV and payback period What information does the payback period provide? Suppose Extensive Enterprises's CFO is evaluating project with the following cash inflows. She does not know the project's initial costs however she does know that the project's regular payback period is 2.5 years. Year Cash Flow Yeart $275,000 $500.000 Year 2 Years 5475.000 Year 4 $475.000 of the project's weighted average cost of capital (WACC) is , what is its NPV? 1397.000 $456.560 O $357.00 5416.65 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that The decounted payback period does not take the time value of money into account The discounted payback period calculated using net income instead of cash flows. The discounted payback period does not take the project's entire le into account