Use the following to answer questions: 
-(Table: Willingness to Pay for Peanuts) Using the table Willingness to Pay for Peanuts, if the price of a bag of peanuts is $9, who will purchase a bag?
Definitions:
Profitability Index
A financial metric that measures the profitability of an investment, calculated as the present value of future cash flows divided by the initial investment cost.
Net Present Value
Net Present Value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows over a period of time, used to evaluate the profitability of an investment.
Payback
The period of time required for the return on an investment to "repay" the original investment cost.
Discounted Payback
A capital budgeting method that calculates the time required to recoup an investment based on discounted cash flows.
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