Alf is considering opening an inter-planetary delivery company. He has analyzed the project using the discounted payback method. Which one of these statements is true?

-Discounted payback does not require a cutoff point to evaluate a capital budgeting project.

-Payback is a better method of analysis than discounted payback.

-The discounted payback period decreases as the discount rate decreases.

-Discounted payback is biased towards long-term projects. Discounted payback is used more frequently in business than payback.