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 boss has a project's net present value (NPV). You don't know the project's initial cost, but you do know the project's regular, or con 2.50 years. man Year Cash Flow Year 1 $375,000 Year 2 $500,000 Year 3 $425,000 Year 4 $400,000 If the project's weighted average cost of capital (WACC) is 7%, the project's NPV (rounded to the nearest dollar) is: $351,771 $334,182 O $404,537 5369,360 Which of the following statements indicate a disadvantage of using the regular payback period (not the discounted paybe budgeting decisions? Check all that apply. The payback period does not take the time value of money into account. The payback period is calculated using net income instead of cash flows. The payback period does not take the project's entire life into account