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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 infiows

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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 infiows shown in the following table- Your boss has asked you to calculste the project's net present value (NPV). You don? know the project's initial cost, but you do krow the project's regulat, or conventional, paybsck period is 2,50 years If the project's weighted average cost of capital (WAcC) is 10%, the project's NPV (rounded to the nearest dolar) is 5326,054 $271,001 $285,264 4256,336 Which of the following statements indicate a disadvantage of using the regular payback pericd (aot the discounted payback period) for capita budgeting declsions? Check all that opply. The payback period is calculated using net income insteod of cash flows. The paybsck period does not take the project's entice life into account. The payback period does not take the time value of moncy into account

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