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 $2\mathrm{.}50$ years.

The project's annual cash flows are:

Year

Cash Flow

Year $1$ $$350,000$

Year $2600,000$

Year $3500,000$

Year $4450,000$

If the project$$s desired rate of return is $10\mathrm{.}00\%,$ the project$$s NPV$$rounded to the nearest whole dollar$$is $\_\_\_\_\_\_\_\_\_.$

Which of the following statements indicates a disadvantage of using the regular, or conventional, payback period for capital budgeting decisions? Check all that apply.

A$.$ The payback period does not take into account the time value of money effects of a project$$s cash flows.

B$.$ The payback period does not take into account the cash flows produced over a project$$s entire life.

C$.$ The payback period is calculated using net income instead of cash flows.