Ch 11: Assignment - The Basics of Capital Budgeting 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. Year Year 1 Year 2 Year 3 Year 4 Cash Flow $350,000 $400,000 $475,000 $400,000 If the project's weighted average cost of capital (WACC) is 10%, what is its NPV? $335,041 $276,773 $320,474 $291,340 Which of the following statements 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 project's entire life into account. The discounted payback period is calculated using net income instead of cash flows. 811 PM search ote 9