Which One of the Following Statements Is Correct

Multiple Choice

Which one of the following statements is correct?

A) A longer payback period is preferred over a shorter payback period.
B) The payback rule states that you should accept a project if the payback period is less than one year.
C) The payback period ignores the time value of money.
D) The payback rule is biased in favor of long-term projects.
E) The payback period considers the timing and amount of all of a project's cash flows.