What information does the payback period provide? Payback period essentially provides the number of years it would take for a project to recover the initial investment from its operating cash flows. As the model was criticized, the model evolved incorporating time value of money to create the discounted payback method. The models still refiected faulty ranking criterla but they provided important information about liquidity and risk. The the payback, other things constant, the greater the project's liquidity. Suppose Acme Manufacturing Corporation's CFO is evaluating a project with the following cash inflows. She does not know the profect's initial cost; however, she does know that the project's regular payback period is 2.5 years. If the project's weighted average cost of capital (WACC) is 8%, what is its NPV? $385.822 5462.935 If the project's weighted average cost of capital (WACC) is B\%, what is its NPV? $385,822 $462,986 5443,695 $366,531 Which of the foliowing statements indicate a disadvantage of using the discounted payback period for capital budgeting decisians? Check ail chat spply. The discounted payback peried is caloulated using net income instead of cash flows. The discounted payback period does not take the time value of money into account, The dscounted payback period does not take the project's entire life into acoount