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 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 doliar) is: $383,658$441,207$422,024$460,390 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted payback period) for capital budgeting decisions? Cneck all that apply. The parback period is caiculated using net income instead of cash fows. The payback period does not take the project's entire life into account, The payback period does not take the time value of money into account
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