ignest/2 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 bow had you project's net present value (NPV). You don't know the project's initial cost, but you do know the prgets regulas or conventional pack 2.50 years. Year Year 1 Cash Flow $300,000 Year 2 $500,000 Year 3 $400.000 Year 4 $450,000 If the project's weighted average cost of capital (WACC) $354,744 $319.270 $390.218 $372,481 Which of the following statements in a daga v budgeting decisions? Check all that al The payback penol does ana the The payor pen 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 pected future cash inflows shown in the following table. Your boss has asked you to calculate the 2.50 years. Year Cash Flow Year 1 $300,000 Year 2 $500,000 Year 3 $400,000 Year 4 $450,000 If the project's weighted average cost of capital (WACC) is 8%, the project's NPV (rounded to the nearest dollar) $354,744 $319,270 $390,218 $372,401 Which of the following statements indicate a disadvantage of using the regular payback period (not the decounted back period) for cata budgeting decisions? Check all that apply The payback period does not take the time value of money ints acu The payback period does not take the project's antire ifs into account The payback period is calculated using net income instead of cast few