$7.$ The NPV and payback period What information does the payback period provide? Suppose you are evaluating a project with the expected future 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. Year Cash Flow Year $1$ $$375,000$ Year $2$ $$500,000$ Year $3$ $$425,000$ Year $4$ $$475,000$ If the project$$s weighted average cost of capital $($WACC$)$ is $7\%,$ the project$$s NPV $($rounded to the nearest dollar$)$ is: $$449,887$ $$490,786$ $$368,089$ $$408,988$