7. The NPV and payback period What information does the payback period provide? Suppose vou are malueting a project with the expected future cash inflows showa in she foliowing table. Your boss has asked you to calculate the preject's net present value (NPV), Vou dont know the project) initjal cost, but you do know the project's regular, or conveational, paytiack petiod is 2.56 years. If the peojecti weighted average cost of capitat (Whcc) is 9 , the project's Nary (rounded to the mearest dolar) is: 5336,063 5375,626 $360561 5394,407 If the project's weighted average cost of capital (WACC) is 9%, the project's NPV (rounded to the nearest dolar) is +338,063 6375,626 5300,501 9.94,497 Which of the following statements indicate a d sadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? check ail that apply. The payback period does not take the project's entire life into account. The payback pericd does pot take the time value of money into aocount. The payback period is calculated using net income instead of cash flows