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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 inlows

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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 inlows shewn 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, parbock period ia 2.50 years. If the projects weighted average cont of eaphal (WACC) is 7 w, the project's NPV (rownded to the nepiest eollar) is: $411,357 $430.065 5373,970 Which of the foliesing statements indicats o disadventage of using the regular pepback pariod (not the diacounted parback period) for capata! budgeting decisiens? Check ar that spaly. The porteck perisd does not tale bie projects ancere ife inte sccount

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