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Please circle answers 7. The NPV and payback period What information does the payback period provide? Suppose Praxis Corporation's CFO is evaluating a project with
Please circle answers
7. The NPV and payback period What information does the payback period provide? Suppose Praxis Corporation's CFO is evaluating a project with the following cash inflows. She does not know the project cost; however, the does know that the project's regular payback period is 2.5 years Year Year 1 Year 2 Cash Flow $275,000 $450,000 $400,000 $425,000 Year 3 Year 4 If the project's weighted average cost of capital (WACC) is 10%, whot its NPV? O $273,322 $330,869 O $287,707 $345,248 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply Ch 11: Assignment. The Basics of capital Budgeting Year 1 5275,000 Year 2 $450,000 Year 3 $400,000 Year 4 $425,000 If the project's weighted average cost of capital (WACC) is 10%, what is its NPV? O $273,322 O $330,863 O $287,707 O $345,248 Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply The lincounted payback period does not take the time value of money into account The discounted payback period is calculated using net income instead of cash flows The discounted payback period does not take the project's entire life into account Step by Step Solution
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