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Assignment 11-The Basics of Capital Budgeting Due on Dec 5 at 8 AM EST Suppose Acme Manufacturing Corporation's CFO is evaluating a project with the
Assignment 11-The Basics of Capital Budgeting Due on Dec 5 at 8 AM EST Suppose Acme Manufacturing Corporation'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 996, what is its NPV? Year Cash Flow Year 1 $325,000 Year 2 $400,000 Year 3 $425,000 Year 4 $450,000 O $344,306 O $378,737 O $395,952 O $309,875 Which of the foliowing statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply The discounted payback penod does not take the time value of money into account. The discounted payback penod is calculated using net income instead of cash flows. The discounted payback penod does not take the project's entirlife into account. Type here to search
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