Attempts: Keep the Highest: /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 Cash Flow Year 1 Year 2 $325,000 450,000 300,000 500,000 Year 3 Year 4 If the project's desired rate of return is 10.00%, the project's NPV-rounded to the nearest whole dollaris Which of the following statements indicates a disadvantage of using the regular, or conventional, payback period for capital budgeting decisions? Check all that apply. The payback period does not take into account the time value of money effects of a project's cash flows. The payback period is calculated using net income instead of cash flows. The payback period does not take into account the cash flows produced over a project's entire life. Grade It Now Save & Continue Continue without saving NPV du payback period 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 p PV). 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. ect's annual cash flows are: ar Cash Flow -1 2 $325,000 450,000 300,000 500,000 3 4 est's desired rate of return is 10.00%, the project's NPV-rounded to the nearest whole dollar-is e following statements indicates a disadvantage of using the regular, or conventional, payback pe $247,406 tal budgeting Check all that apply. $262,868 ne payback period does not take into account the time value of money effects of $278,331 cash flows. $309,257 e payback period is calculated using net income instead of cash flows. e payback period does not take into account the cash flows produced over a project's entire life