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What information does the payback period provide? Suppose Extensive Enterprises's CFO is evaluating a project with the following cash inflows. She does not know the
What information does the payback period provide? 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 (Dollars) $275,000 Year 1 Year 2 450,000 Year 3 475,000 Year 4 425,000 If the project's weighted average cost of capital (WACC) is 7%, what is its NPV? O $399,529 $419,505 0 $459,458 0 $379.553
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