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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 initial cost, but you do know the project's regular, or conventional, payback period is 2.50 years. If the project's weighted average cost of capital (WACC) is 7%, the project's NPV (rounded to the nearest dollar) is: $384,986 $461,983 $423,485 $346,487 Which of the following statements indieate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that opply. If the project's weighted average cost of capital (WACC) is 7%, the project's NPV (rounded to the nearest dollar) is: $384,986$461,983$423,485$346,487 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 appiy. The payback period does not take the project's entire Iffe into account. The payback period is calculated using net income instead of cash flows. The payback period does not take the time value of money into account

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