Question 3 Which of the statements regarding the payback period method is not true? 0.15 pts If a project requires an increase in the company's working capital, that amount is not included in the calculation of the initial investment. OA reduction in operating expenses, or cost savings, is treated as an increase in the annual net cash inflow generated by a project. O Depreciation must be added back to operating income to compute the annual net cash flow. O When old equipment is being replaced with new equipment, the cash proceeds from the sale of the sale of old equipment reduces the amount of the initial investment.