Question: 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
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 dont know the project's initial cost, but you do know the project's regutar, or conventional, payback period is 2.50 years. If the project's weighted average cost of capetal (WACC) is B%, the project's NPV (rounded to the nearest doliar) is: 5331,415 5313,972 5348,858 3383,744 Which of the following statements indicote a disadvantage of using the reguiar payback period (not the discounted paybock period) for capital budgeting decisone? Check all that opply: The poyback period is calculated using net income instead of cash flows. The payback period does not take the tome vake of money into occount. The paybeck peridd does not take the prejecty entare life into accoent
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