8. The NPV and payback period a Aa What information does the payback period provide? Suppose Praxis Corporation's CFO is evaluating a project with the following cash infows. She does not know the project's initial cost, however, she does know that the project's regular payback period is 2.5 years If the projet's weighted average cost of capital (WACC) is 7%, what is its NPV? Year Cash Fl Year 1 $375,000 Year 2 $425,000 Year 3 $475,000 Year 4 $425,000 0 $415,959 0 $396,151 O $356,536 O $475,381 Which of the following staterments indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply The discounted payback period does not take the projet's entire lfe into The discounted payback period is calculated using net income instead of cash flows The discounted payback period does not take the time value of money into account. Swe & Conunue