Chapter 9 Assignment Back to Assignment By Tools Attempts Keep the Highest / 2 9. The NPV and payback period Tips 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 projects regulator conventional, payback period is 2.50 years. The project's annual cash Nows are: ips Year Year 1 Year 2 Cash Flow $400,000 G00,000 400,000 Year 3 Year 4 300,000 If the project's desired rate of retumis 7.00%, the project's NPV-rounded to the nearest whole dollars Which of the following statements indicate a disadvantage of using the discounted payback period for capital budgeting decisions? Check all that apply The discounted payback period does not take into effect the time value of money effects of a project's cash flows. The discounted payback period is calculated using net income instead of cash flows. The payback period does not take into account the cash flows produced over a projects entire life Grade It Now Save a Continue Q Searc nflows shown in the following table. Your boss has asked you to calculate the project's net present but you do know the project's regular, or conventional, payback period is 2.50 years. project's NPV-rounded to the nearest whole dollaris antage of using the discounted payback period for capit. $202,626 decisions? Check all that $215,291 make into effect the time value of money effects of a proj $227,955 ws. ed using net income instead of cash flows. $253,283 ccount the cash flows produced over a project's entire life. Grade It Now Save & Continue MacBook Air