71. Which of the following capital budgeting techniques is most preferred? a. payback b. profitability index c. net present value d. internal rate of return 72. Which of the following indicates a disadvantage of the payback period? a. cash flows beyond the payback period b. liquidity c. time value of money d. all are disadvantages 73. T or F The profitability index measures the future value of each dollar spent on the initial investment. 74. Which of the following is not true about the net present value technique? a. Represents added value to the firm b. Also known as the discounted cash flow technique c. PV inflows - PV outflows d. Shareholders miss out on the timing and magnitude of cash flows a 75. Which of the following is true about the internal rate of return? a. It is the discount rate that causes the project to have a NPV > 1 b. If the IRR exceeds the cost of funds, there is a deficit after paying for the capital c. Use of a rate vs. a dollar amount is necessary for the reinvestment rate assumption d. IRR produces the same accept/reject decision as NPV