What is the profitability index of this proposed project

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1. Which of the following statements is FALSE?

The payback period tends to ignore the later cash flows.

The payback period is useful as a rough measure of a project's liquidity.

The payback period ignores the time value of money.

The payback period depends on the cost of capital (WACC).

2. XYZ Inc. is evaluating a project. The project requires an inital investment of $ 78 million, and has an estimated NPV of $17 million. What is the profitability index of this proposed project?

Reference no: EM131928820

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