Attempts 0.7 Keep the Highest 07/2 12. The NPV and payback period Suppose you are evaluating a project with the 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. The project's annual cash flows are: Year Year 1 Year 2 Year 3 Cash Flow $300,000 400,000 400,000 350,000 Year 4 If the project's desired rate of return is 7.00%, the project's NPV-rounded to the nearest whole dollaris Which of the following statements indicate a disadvantage of using the discounted payback period for capit apply. $258,625 decisions? Check all that $274,789 The payback period does not take into account the cash flows produced over a project's entire life $290,953 The discounted payback period does not take into effect the time value of money effects of a pro $323,281 ws. The discounted payback period is calculated using net income instead of cash flows