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 WACC is 7%, what is its NPV? $441, 366 $404, 586 $422, 976 $367, 805 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 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. Comparison of alternative decision criteria There are four principal decision models for evaluating and selecting investment projects: Net present value (NPV) Profitability index (PI) Internal rate of return (IRR) Payback period (PB) Which criteria assume that the project's net cash flows (NCFs) are reinvested at the firm's cost of capital? NPV, IRR, and PI NPV, PI, and discounted PB IRR PI Read the following statements and categorize whether they characterize the IRR, NPV, PB, or PI decision criteria