Which of the following statements is INCORRECT?

a.

Any project deemed acceptable using the discounted payback period will also be acceptable using the traditional payback period.

b.

NPV profile for a project shows how sensitive the project is to the choice of a discount rate.

c.

Profitability index is the ratio of the company net income to the initial outlay or cost of a capital budgeting project.

d.

Discounted payback period takes the time value of money into account in that it uses discounted cash flows rather than actual undiscounted cash flows in calculating the payback period.