The NPV and payback period

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:

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 indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that

apply.

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

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

The discounted payback period does not take into effect the time value of money effects of a project's cash flows.