The NPV and Payback Period (Answer All Please)

What information does the payback period provide? 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 NPV. You don't know the project's initial cost, but you do know the project's regular payback period is 2.5 years. If the project's WACC is 7%, the project's NPV is which of the following? $460, 329 $481, 253 $418, 481 $334, 785 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period does not take the project's entire life into account. The payback period is calculated using net income instead of cash flows. 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 method or methods adjust the project's net cash flows (NCFs) to recognize the effects of the magnitude, timing, and riskiness of the project's cash flows? NPV and IRR NPV NPV and discounted PB NPV, IRR, PI, and discounted PB Read the following statements and categorize whether they characterize the IRR, NPV, PB, or PI decision criteria