Attempts o Keep the Highest/2 12. 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 not 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 2.50 years. The project's annual cash flows are: Year Year 1 Cash Flow $400,000 450,000 600,000 Year 2 Year 3 Year 4 300,000 If the project's desired rate of return is 7.00%, the project's NPV-rounded to the nearest whole dollaris Which of the following statements indicates a disadvantage of using the regular, or conventional, 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 payback period is calculated using net income instead of cash flows, The payback period does not take into account the time value of money effects of a project's cash flows. Grade It Now Save & Continue Attempts Keep the Highest/2 12. 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 2.50 years. The project's annual cash flows are: Cash Flow Year Year 1 Year 2 $400,000 450,000 600,000 Year 3 Year 4 300,000 If the project's desired rate of return is 7.00%, the project's NPV-rounded to the nearest whole dollar-is Which of the following statements indicates a disadvantage of using the regular, or conventional, payback $268,422 bital budgeting decisions? Check all that apply. $285,198 The payback period does not take into account the cash flows produced over a project's entire life $301,974 The payback period is calculated using net income instead of cash flows. $335,527 The payback period does not take into account the time value of money effects of a project's cash flows