8. The NPV and payback period Aa Aa What information does the payback period provide? Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. 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 project's weighted average cost of capital (WACC) is 8%, what is its NPV? Year Cash Year 1 $350,000 Year 2 $400,000 Year 3 $425,000 O $389,704 O $407,417 O $301,135 O $354,276 Year 4 $425,000 which of the following statements indicate a disadvantage of using the dscounted payback period for capital budgeting decisions? Check ai that apply C3 The discounted payback period does not take the time value of money into account me oscounted payback perod does not taktthe proon entre str into account 2 3 4 6 8 9