The NPV and payback period

Suppose Extensive Enterprises'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	Cash Flow
Year 1	$325,000
Year 2	$500,000
Year 3	$425,000
Year 4	$400,000

1. If the project's WACC is 10%, what is its NPV? a. $237,323 b. $276,877 c. $263,692 d. $250,000

Which of the following statements indivate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply

a. The discounted payback period does not take the time value of money into account b. The discounted payback period does not take the project's entire life into account c. The discounted payback period is calculated using net income instead of cash flows