Attempts: Average: ,i 4 1'. 111e "PM and payback period An Aa = What information does the payback period provide? Suppose you are evaluating a project with the expected future cash inows shown in the following table. Your boss has asked you to calculate the project's net present value {NW}. You don't know the project's initial oost, but you do know the project's regular, or oonventional, payback period is 2.50 years. If the project's weighted average oost of capital {WAEC} Year Cash Flow is 0%, the project's NW {rounded to the nearest dollar} Year 1 $300,000 is: Year2 $425,000 0 $4?5'132 Years $500,000 ,3 $433352 Year4 $425,000 D $413,202 0 $454,522 Which of the following statements indicate a disadvantage of using the regular payback period {not the discounted payback period} for capital budgeting decisions? Check all that apply. I:I The payback period does not take the time value of money into account. I:I The payback period is calculated using net inoome instead of cash flows. I:I The payback period does not take the project's entire life into account