Consider the Following Statements About the Payback Period

Multiple Choice

Consider the following statements about the payback period:
I. As shown in your text, the payback period considers the time value of money.
II. The payback period can only be used if net cash inflows are uniform throughout a project's life.
III. The payback period ignores cash inflows that occur after the payback period is reached.
Which of the above statements is (are) correct?

A) I only.
B) II only.
C) III only.
D) I and II.
E) I, II, and III.