Payback Period: Evaluating how quickly the initial investment is recovered is vital for liquidity. A shorter payback period is generally preferred. Discounted Payback Period: Similar to payback but considers the time value of money, providing a more accurate measure of investment recovery. Profitability Index: The ratio of present value of future cash flows to the initial investment. A ratio greater than 1 signifies a potentially good investment. Degree of Operating Leverage (DOL): Measures the sensitivity of operating income to changes in sales, indicating the project's risk level. Is this correct?

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