A project has a required payback period of four years. Which one of the following statements is correct concerning the payback analysis

of this project?

Multiple Choice

The cash flows in each of the four years must exceed one$-$fourth of the project's initial cost if the project is to be

accepted.

The cash flow in Year $4$ is ignored.

The project's cash flow in Year $4$ is discounted by a factor of $(1+R{)}^4.$

The cash flow in Year $3$ is valued just as highly as the cash flow in Year $2.$