In general, cash flows expected in the distant future are risky than cash flows received in the near-term-which suggests that the payback period can also serve as an indicator of project risk. 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 2.50 years. If the project's weighted average cost of capital (WACC) is 7%, the project's NPV (rounded to the nearest dollar) is: $427,897 $472,939 $450,418 $382,855