Analysis based on Additional Project Evaluation Standards: Payback Period: Liquidity depends critically on how soon the initial investment is recouped. In general, a shorter payback period is desirable. Discounted Payback Period: This measure of investment recovery is more accurate than payback since it takes time worth of money into account. The profitability index is the ratio of the initial investment to the present value of future cash flows. A ratio higher than one suggests that the investment could be profitable. Degree of Operating Leverage (DOL): Indicates the degree of risk associated with the project by measuring how sensitive operating income is to shifts in sales