Which of the following is false with regards to the payback period?

A.

The payback period gives no indication of the investment's profitability.

B.

All else being equal, a shorter payback period is more desirable than a longer payback period.

C.

It is computed as follows, regardless of whether cash flows are equal or unequal: Initial investment / Expected annual net cash inflow.

D.

The payback period is the length of time it takes to recover the initial cost of the capital investment.