1. The Payback Period can be described as the number of periods it takes for a project to return the dollar amount of the required investment. The Discounted Payback Period can be described as the number of periods it takes for a project to return the same current purchasing power as the dollar amount of the required investment.
a) True
b) False
2. As long as the firm's WACC > 0, the Discounted Payback Periods will be higher than the Payback Periods for any given project.
a) True
b) False
3. the Profitability Index is a measure of the geometric average rate of return on a project.
a) True
b) False