# Suppose Omni Consumer Products's CFO is evaluating a project with the following cash inflows. She does not knowthe project's initial cost; however, she does know that the project's regular payback period is 2.5 years.If the project's weighted average cost of capital (WACC)is 10%, what is its NPV?Cash FlowYearO \$327,934Year 1\$325,000O \$295,141O \$344,331O \$360,727Year 2\$425,000Year 3\$425,000\$475,000Year 4Which of the following statements indicate a disadvantage of using the discounted payback period for capitalbudgeting decisions? Check all that applyThe discounted payback period is calculated using net income instead of cash flows.The discounted payback period does not take the time value of money into account.The discounted payback period does not take the project's entire life into account

Question
Step 1

Part 1:

Payback Period = 2.5 years

Calculation of Initial Investment:

Step 2

Calculation of NPV using excel:

Step 3

The result of above tabl...

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