QUESTION 2 (Buy Question - Extra Credit) A project being considered has normal cash flows, with one outflow followed by a series of inflow Which of the following statements about the project is CORRECT and which is INCORRECT? Ha statement is INCORRECT, explain why? (Note You can write several full sentences in the answer boxes but keep the explanations to 5-30 words). a. The longer a project's payback period, the more desirable the project is normally considered to be by this criterion. b One drawback of the payback criterion for evaluating projects is that this method does not properly account for the time value of money. c. If a project's payback is positive, then the project should be rejected because it must have a negative NPV. d. The payback period can never lead to the acceptance of a negative NPV project. e. If a company uses the same payback requirement to evaluate all projects, say it requires a payback of 4 years or less, then the company wil tend to reject projects with relatively short lives and accept long lived projects, and this will cause its risk to increase over time